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Budget Proposal From Obama

Sunday, March 9, 2014 - 1:27 PM
I was listening to the Ric Edelmman Show today and he said in the Presidents proposal he wants Roth IRA's to have mandatory withdrawals like Traditional IRA's.  That would force them into taxable accounts.  After that it would only be a matter of time before they would want to tax the Roth accounts.  The Beast needs to be feed and they need to be watched.  Don't let them get away with it.
5
MaeclMaecl82 posts since
Jul 6, 2010
Rep Points: 658
1. Sunday, March 9, 2014 - 1:54 PM
The AARP Blog- Articles, News and Information for the 50+ Population

I found the above information in the AARP blog if this is what you are referring to.  This seems to curtail many benefits of why people use the Roths.  I doubt if even Obama can get this passed these days.
4
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152
2. Sunday, March 9, 2014 - 2:57 PM
This is from Employee Benefits News (Dave Camp's proposals) on IRA's, Roths, penalties, etc. 
You may have to sign up for free registration. 

My husband was chairman of his health&welfare and pension committees and I did a lot of research for him for the meetings. Even though he was put on disability in 1995 and has since passed I continue to do research and send information to trustees of both committees. Doing this, the retirees before age 65 were able to keep their health benefits back for 1/2 price (same as retirees,) and those over 65 can continue to pay their Medicare supplemental healthcare through their work. 

Read your SPD and memorize what is important to you. Keep current issues and as well as all past issues. Also google alerts are very beneficial.
http://ebn.benefitnews.com/news/r...1.html?pg= 
The link went to page 3. This link  will start from page http://ebn.benefitnews.com/news/rep-dave-camps-tax-reform-proposal-change-retirement-benefit-programs-2739768-1.html?pg=1 
1
Ally6770Ally6770943 posts since
Jan 16, 2010
Rep Points: 2,742
3. Sunday, March 9, 2014 - 3:09 PM
#2  Would you please advise what "SPD" stands for?  Does this have anything to do with the Roth proposal that Obama is trying to make the change to?  You seem to be referring to Health Benefits and Merci's post is about the Roth.  Will the SPD you are referring to be about the Roth changes??  Thanks.
1
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152
4. Sunday, March 9, 2014 - 4:36 PM
Post disappeared twice will try again. SPD is the policy and procedures for employees. Because a law allows something some plans won't. 

Both Camp's plan and Obama's are suggestions. Neither are laws. Camps didn't go through committee and neither will the Obama budget. Both are nearly identical except Camp did not address hedge funds, nor high balances in IRA's. 

All inherited Roth IRA's NOW have to start RMD's the year after death except if it was inherited by a spouse. The change is requiring the owner to start RMD's on a Roth at 70 1/2. Did not read ANYWHERE that they would be taxed or that they would be included in MAGI, Also inherited IRA's would have to be taken out within 5 years even though they did not choose the 5 year rule.  But again did not see where it would be taxed in either in the Camp proposal or in the presidents budget. 

PS it is only Congress that can prepare and passes the budget after going through appropriate committees and voted on by both houses and then reconciliation if required has to be voted on. The  president can only sign or veto the budget. 

Examples of banking laws now that allow but not require---FDIC and NCUA they allow beneficiaries but not require. Some banks and credit unions will not allow beneficiaries when opening an account. FDIC and NCUA allow POD and ITF but both banks and credit unions we have read about and I dealt with one that would not allow POD or ITF etc until after the account was opened and approved then the POD or ITF and beneficiaries were allowed. Even some banks and credit unions did not allow POD, ITF after the account was opened. 
To require that a IRA, 401K etc to go through probate is despicable. 

Both Camp's plan and Obama's are suggestions. Neither pass laws. Camps didn't go through committee and neither did the Obama budget. Both are nearly identical. 
1
Ally6770Ally6770943 posts since
Jan 16, 2010
Rep Points: 2,742
5. Sunday, March 9, 2014 - 5:15 PM
"To require that a IRA, 401K etc to go through probate is despicable. "

What??  Where is this coming from?  Are you stating that if an IRA etc, gas a beneficiary on it like a spouse etc. it still has to go through probate?  Is that new?  I thought all our financial products like CDs, IRAs etc. which have beneficiaries or joint owners are not probatable.  I have been so busy today researching something for DP on the computer that I did not get to read your links yet.  Is this included in those links?  Thanks.
1
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152
6. Sunday, March 9, 2014 - 6:41 PM
Paoli thank you for that article as it contained more info than I heard this morning. It may not have the votes to pass now, but future elections are key and it can happen.  It's been rumoured for years that some in government want control of all retirement money.  They would want them in government accounts like Social Security.

I have been looking at assisted living for my parents and am shocked at the cost.  For 2 the cost of rent + level of care runs 12 to 18 thousand a month.  We aren't wealthy and we need the money we saved under the terms stated.  They have no right to it.  No amount is ever enough for them.
1
MaeclMaecl82 posts since
Jul 6, 2010
Rep Points: 658
7. Sunday, March 9, 2014 - 8:00 PM
Maeci:  I had no idea the gov was trying to get a hold of our private IRA accounts!  That would be a catastrophe because they would use it for other means and we would end up not being able to depend on years of savings!  We must make sure it can't be done while Obama is in office and be sure to vote only those in we can depend upon not to take "our" money away from us.  Look at what they have done to Social Security.  I can see Obama wanting to do this but what new President would dare try to do this?  I have read nothing about this so I will try to find some articles if I can so I can let my Senators know how we feel about this.  Thanks for posting this info.
1
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152
8. Sunday, March 9, 2014 - 8:55 PM
It has been talked about.  I've heard others say it's absurd and they would never do it.  It would likely only be from the extreme left and lets face it, you never know.  That's why we need an informed electorate, and we don't have that.
1
MaeclMaecl82 posts since
Jul 6, 2010
Rep Points: 658
9. Sunday, March 9, 2014 - 9:15 PM
I am shocked. Not.
Now we know why Obama wants the MYRA accounts opened, so the funds can be raided.
If you like your MYRA account you can keep it. (If there is anything left).
3
FARFAR108 posts since
Feb 26, 2013
Rep Points: 387
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