Our Washington leaders are heading towards something that is actually GOOD for once. They are planning to redo retirement savings, etc. for the better. They are increasing the amount you can put into retirement accounts tax deferred. Even better than that .....................

Currently you are required to start taking IRA/401K distributions at seventy years and a half. Every distribution is taxed as ordinary income whether you need the money or not.

Under the current legislation that they look like they will pass the required distributions are delayed to age 75 - HUGE win for retirees - means you get to keep accumulating your money an extra four years without it being taxed

That would be great, if I wasn’t 74 1/2. Well, you young whippersnappers enjoy it.

I never understood why you could only contribute so much.

Man I guess some of y’all plan on living for ever! No way I will be still trying to save and defer drawing on it at that age.

Tlk, I’m pretty sure it not too long ago changed from 70.5 to about 72.5 or so. If I’ve been given bad info from my guy then I’m not pleased with him. The 75 is news to me and I like it. Thanks for the heads up.

Freerange, you are correct. Think it was done last year.

I plan to be out at 60ish and onward to other adventures. Fully agree!

You can withdrawal from 401k penalty free starting age 59 1/2.

By 75 to 80 I plan to be somewhere between destitute or dead.

If the max contribution goes up, I’ll be happy. I’ve got a few decades til retirement…and I can’t understand why when I pay over the max contribution, I have to pay a fine on the difference. At least it’s helped me diversify

take it all out...

I needed mine more when I first started taking it out.

Funny, money saved for retirement isn't desired to be accessed when retired.

In the year you turn 72 unless you turned 70.5 by Jan. 1, 2020.

You are correct - age 72 currently - my bad

I'm with you. I always told my people "I'm not tied to this earth like a lot of folks who want to stay living on it are. My retirement plan is beyond this world and I don't plan on taking anything with me." I also so told my kids not to expect anything when I die, I would have squandered it all and the best thing I could have ever given them was teaching them how to learn, work and enjoy life when you can. I'm blessed to have had parents that did the same. I feel for the next generations who are waiting with their hands out.

My neighborhood seems to have an inordinate amount of never-leave-the-nesters. 20 something guys living with mummy and daddy. They seem to live to go to their one class a day at the local college around 9ish in their LOUD Challengers or tricked out Mustangs and be home by the time mummy has lunch ready. New car every year or so. They're (the parents) doing it wrong.

Something is in it for them, they are not doing it for us.

By delaying the RMDs, and not changing the percentage formula, the tax rate on the RMD could be higher.
Also, by delaying the RMDs, it could increase the remaining IRA balance to be paid to working beneficiaries. By adding the inheired IRA distibutions to thier earned income, the beneficiaries may experince bracket creep.

Bureaucrats see taxes as thier income stream. With an aging population, this could be a good investment in a future bureaucratics income stream.

Just my 2 cents worth.

+1...My thoughts exactly.

My money guy keeps telling me that when I get into forced distribution no problem. He can take the money & roll it over into a Roth & keep it growing. I told him once in a Roth the funds aren't available for 3 years, right? His answer is, well yea, but.... (followed by deer-in-head-lights look).

For those thinking this is such a great way to deal with handling their money to be distributed via wills to loving heirs, Remember, they likely aren't as old as you and their tax brackets are also likely higher. What they receive will be subject to the tax penalties and such. Too many don't consider this. We've been "cleansing" Mom's ever since Daddy died over five years ago.

Nobody will ever know what the future income tax rates will be - depends on what party is in control. etc. Remember that once a dollar goes to the IRS you will never see it again nor will you earn any interest on it again. For me I will take my chances with a potentially higher tax bracket versus giving it to the IRS earlier

Also if married and the person with the IRA/401K dies it goes to the spouse with no tax impact - when it eventually goes to children then it is going to be taxed on way or another -

Im not real smart on this stuff and on RMD I dont have to think a lot about it for a few more years. For those of you saying or implying that the change to 75 could be bad-you dont HAVE to wait till 75 but you CAN wait. Seems like a no lose situation that can be tailored to the individual. Those that need the money can get it but if you dont then let it sit. Personally I plan to live a long time and if I do I may not have much money left.

Those young, blonde hospice nurses don't come cheap. Especially if you require them to wear a French maid outfit.

FIFY

X2

I’ll be retired well before tax penalties go away

We do the RMDs every year. Uncle Sam takes his cut and the rest gets reinvested or used as needed. If it wasn’t for the RMDs, they wouldn’t get much in the way of tax dollars, so this is just to keep getting a steady annual cut of your money and everybody else’s.