Pension Plans will be a thing of the past

[SandEagle]

not sure if this was posted, but this is big. pretty soon, we're going to be working til we drop... sad indeed

"The measure enacted Tuesday also suspends for 2009 a requirement that people 70 1/2 and older must withdraw a minimum amount from their retirement plans or IRAs. Those who do not are subject to a 50 percent penalty on the amount that should have been withdrawn."



http://www.google.com/hostedne...bdcMteyksgr2QD958HQ8G0


P&N'd

ATOT Moderator ElFenix

 

[xanis]

I sure hope this gets swatted down or eliminated. It's some bullshit IMO.

 

[Capt Caveman]

Pension plans have been a thing of the past for a long time.

 

[JSt0rm]

I think pension plans can only work if they are the responsibility of the actual union. Otherwise I just wouldn't trust it.

 

[blackangst1]

I dont see a problem with

The measure enacted Tuesday also suspends for 2009 a requirement that people 70 1/2 and older must withdraw a minimum amount from their retirement plans or IRAs. Those who do not are subject to a 50 percent penalty on the amount that should have been withdrawn

 

[Strk]

Originally posted by: blackangst1
I dont see a problem with

The measure enacted Tuesday also suspends for 2009 a requirement that people 70 1/2 and older must withdraw a minimum amount from their retirement plans or IRAs. Those who do not are subject to a 50 percent penalty on the amount that should have been withdrawn

Maybe I'm missing something, but the wording seems a little confusing to me; that, or it means exactly what it says. You no longer have to withdraw from it, but will be penalized for not withdrawing from your IRA? That seems odd to me.

 

[woodie1]

Originally posted by: Strk

Originally posted by: blackangst1
I dont see a problem with

The measure enacted Tuesday also suspends for 2009 a requirement that people 70 1/2 and older must withdraw a minimum amount from their retirement plans or IRAs. Those who do not are subject to a 50 percent penalty on the amount that should have been withdrawn

Maybe I'm missing something, but the wording seems a little confusing to me; that, or it means exactly what it says. You no longer have to withdraw from it, but will be penalized for not withdrawing from your IRA? That seems odd to me.

Yes, the wording is confusing. I read somewhere that the RMD for those 70 1/2 and older has been put on hold for 2009 on IRAs.

 

[woodie1]

nm

 

[Jeff7]

And yet the poor will continue voting Republican.

"Look at us, we're cutting your taxes! Here's a little somethin'-somethin'. Now bend over while we screw you good. Don't worry, you won't feel the burn for another 30 years."

 

[BarneyFife]

Originally posted by: Jeff7
And yet the poor will continue voting Republican.

"Look at us, we're cutting your taxes! Here's a little somethin'-somethin'. Now bend over while we screw you good. Don't worry, you won't feel the burn for another 30 years."

My favorite is when the typical family saves $40 a year and now they don't have any money to salt and plow the snow off the streets. Good luck getting to work now.

 

[Wheezer]

Originally posted by: Jeff7
And yet the poor will continue voting Republican.

"Look at us, we're cutting your taxes! Here's a little somethin'-somethin'. Now bend over while we screw you good. Don't worry, you won't feel the burn for another 30 years."

yeah...and yet the bill was sponsored by 4 people.....2 were Democrats and it got through the house...which, correct me if I am wrong, but is that not controlled by the Democrats also?

but your right...it all the republicans fault.


By the way, here is the bill in case you would like to read it in its entirety.

 

[Jhhnn]

Dunno about the bill as a whole, but not having to pull money out of retirement accounts and pay taxes on the proceeds is good for seniors.

The rest? I'll wait and see how it's interpreted by those who can decipher the legalese of the bill itself...

 

[EagleKeeper]

Currently, retirement funds have to be withdrawn at set amounteach year.
If people did not need the funds, they would be penalized for not taking.

This is suspending the requirement to withdraw or pay.

 

[ProfJohn]

Originally posted by: Jeff7
And yet the poor will continue voting Republican.

"Look at us, we're cutting your taxes! Here's a little somethin'-somethin'. Now bend over while we screw you good. Don't worry, you won't feel the burn for another 30 years."

Democrats control both sides of congress. This could not have passed without their votes.

BTW:
Dec 10, 2008: This bill passed in the House of Representatives without objection. A record of each representative's position was not kept.

Dec 11, 2008: This bill passed in the Senate by Unanimous Consent. A record of each representative's position was not kept.

So everyone in congress voted for the bill, not one objection or no vote it seems...

 

[2Xtreme21]

How does this benefit anyone?

 

[ProfJohn]

Read the link, it looks like this is only a temp thing done to help these companies out during an economic down turn.

 

[Jhhnn]

Originally posted by: 2Xtreme21
How does this benefit anyone?

It helps seniors who don't need to draw money out of their IRA's. Now, they can leave whatever they want in those vehicles to grow on a tax deferred basis. Formerly, at least half the money had to be withdrawn prior to age 70-1/2 to avoid penalties.

Other provisions are apparently beneficial to business, not to mention Wall St...

 

[woodie1]

Originally posted by: Jhhnn

Originally posted by: 2Xtreme21
How does this benefit anyone?

It helps seniors who don't need to draw money out of their IRA's. Now, they can leave whatever they want in those vehicles to grow on a tax deferred basis. Formerly, at least half the money had to be withdrawn prior to age 70-1/2 to avoid penalties.

No, no, no ...

If you don't take the required minimum distribution then the amount you should have taken out is taxed at 50%.


"Employer-provided qualified retirement plans and individual retirement accounts and annuities (IRAs) are subject to RMD rules. RMDs generally must begin by April 1 of the calendar year following the calendar year in which the individual reaches age 70 ½. RMDs are generally based on the joint life expectancy of the IRA owner and his beneficiary. For IRAs and defined contribution plans, the RMD for each year is determined by dividing the retirement account balance as of the end of the prior year by a distribution period, which is found in an IRS-supplied life expectancy table. For instance, an individual's 2008 RMD is determined by reference to such individual's account balance on December 31, 2007 divided by the joint life expectancy of the individual and his beneficiary found in the IRS table.

Failure to make a RMD triggers a 50% penalty tax calculated against the RMD that should have been distributed in that particular year."

 

[blackangst1]

Originally posted by: Jhhnn

Originally posted by: 2Xtreme21
How does this benefit anyone?

It helps seniors who don't need to draw money out of their IRA's. Now, they can leave whatever they want in those vehicles to grow on a tax deferred basis. Formerly, at least half the money had to be withdrawn prior to age 70-1/2 to avoid penalties.

Other provisions are apparently beneficial to business, not to mention Wall St...

IRA =! pension.

 

[DanceMan]

I'm not sure if everybody is reading this right.

What I see is this:

1) Business don't have to fully fund their pension plans for the 2009 year ONLY. Also, it says that it does not remove the obligations for funding the pensions, but does adjust the schedules set by the 2006 law. So, they still have to pay, maybe just do it in a different year or time.

2) For Retirement and IRA plans, people 70 1/2 years or older are not required to withdraw a minimum amount for the year 2009 ONLY.

I suppose #1 is to try to ease the burden upon businesses for next year, and #2 is to try to keep more money in the pension plans, or allow folks who lost some amount of money to try to help recover some.

But, it looks like that for after 2009, everything is SUPPOSED to go back to normal. So, I'm not sure if the OP's statement is true, but time may have to bear that out.

As an aside, how is it that a bill like this can be passed by the House without a recording of the votes?

 

[DanceMan]

Originally posted by: blackangst1

Originally posted by: Jhhnn

Originally posted by: 2Xtreme21
How does this benefit anyone?

It helps seniors who don't need to draw money out of their IRA's. Now, they can leave whatever they want in those vehicles to grow on a tax deferred basis. Formerly, at least half the money had to be withdrawn prior to age 70-1/2 to avoid penalties.

Other provisions are apparently beneficial to business, not to mention Wall St...

IRA =! pension.

"Employer-provided qualified retirement plans and individual retirement accounts and annuities (IRAs) are subject to RMD rules.

Probably was easier to say 'IRA' than all that bolded stuff above, but they are all under the same restrictions.

 

[blackangst1]

Originally posted by: DanceMan

Originally posted by: blackangst1

Originally posted by: Jhhnn

Originally posted by: 2Xtreme21
How does this benefit anyone?

It helps seniors who don't need to draw money out of their IRA's. Now, they can leave whatever they want in those vehicles to grow on a tax deferred basis. Formerly, at least half the money had to be withdrawn prior to age 70-1/2 to avoid penalties.

Other provisions are apparently beneficial to business, not to mention Wall St...

IRA =! pension.

"Employer-provided qualified retirement plans and individual retirement accounts and annuities (IRAs) are subject to RMD rules.

Probably was easier to say 'IRA' than all that bolded stuff above, but they are all under the same restrictions.

Fair enough. I still dont see a problem though. Prior to this change if you didnt withdraw you were penalized, now youre not. Unless Im misreading it.

 

[JS80]

Originally posted by: SandEagle
not sure if this was posted, but this is big. pretty soon, we're going to be working til we drop... sad indeed

"The measure enacted Tuesday also suspends for 2009 a requirement that people 70 1/2 and older must withdraw a minimum amount from their retirement plans or IRAs. Those who do not are subject to a 50 percent penalty on the amount that should have been withdrawn."



http://www.google.com/hostedne...bdcMteyksgr2QD958HQ8G0


P&N'd

ATOT Moderator ElFenix

Finally he does something right geez.

 

[ericlp]

I'll start clapping when they get rid of the death tax but it's a start.

 

[Nebor]

Sounds good to me.