Bill in Congress HR 8331
 

HR 8331 would waive required minimum distributions for the 2022 tax year. That’s a nice way of saying Uncle Sam would not force older folks to withdraw more money than necessary from their retirement accounts this year. :thumbup:

Contact your state Representative.
Daniel Webster in Marion County

What else is in this bill?

well, we're already halfway thru the 2022 tax year and RMD's have already been distributed for the last 7 months. Too little, too late.

If this year (2022) is your first RMD, you have until April 1, 2023 to take it. If it is not your first RMD, your have until December 31, 2022. So, if you have already taken all or part of your RMD for 2022, you took it earlier than you needed to.

Given what the markets were at on December 31, 2021 when the RMD was calculated and what they'll probably be at on December 31 this year, that bill would be a big relief for a lot of folks.

If passed, I would take advantage of the law, but I don't support it. It will just raise the National debt. We need to pass laws that will reduce the debt.

Let me be careful, how long ago was the debt reduced, I know, do you?

Wouldn't the IRS take more money long term if taxpayers sold in an up market?

A synopsis of HR8331 seems to defer start date not for accounts already being withdrawn.
Introduced in House (07/12/2022)
“This bill suspends in 2020 and 2022 the required minimum distribution rules for defined contribution retirement plans or individual retirement plans. Under current law, participants in tax-exempt retirement plans must begin making distributions of plan amounts at the required beginning date (i.e., April 1 or the calendar year following the later of the calendar year in which the employee attains age 72, or the calendar year in which the employee retires).
Sponsor: Rep. Davidson, Warren [R-OH-8] (Introduced 07/12/2022)”
It has only been introduced not up for a vote YET.

All Info - H.R.8331 - 117th Congress (2021-2022): To amend the Internal Revenue Code of 1986 to temporarily suspend required minimum distribution rules for certain retirement plans and accounts. | Congress.gov | Library of Congress

I think it was when Bill Clinton was president, but I am not sure.

Maybe, but who knows what the Government will do in the future?

Yes indeed, retiredguy123, it sure was.

That was also the time when the capital gains exclusion for the sale of a primary residence, after owning for two years, went into effect.

That change in the tax law helped a lot of boomers to sell houses and to not have to turn around and buy a more expensive house or pay taxes on the gain.

That change was something that helped regular people to save a lot of money…..and it still does.

Lots of people here, over the years, have sold a longtime primary residence elsewhere in the country, and then bought in TV for cash — and kept the change — tax free.

That cap gains tax law change in the late 1990s created my favorite tax law ever.

Many sellers now don’t remember how it used to be when profit on a house could be gobbled up by cap gains — before the Clinton years.

Boomer

Quite true, the RMD was passed so that those Congress people who believe in keeping our deficit down would allow the ira laws to be passed. Otherwise you have income put away that would never be taxed

How would the IRS time the market?
 

Since we're never having a budget equal to the taxes coming in what's a few billion dollars?

Better sit down when dealing with the government because someone is going to get screwed

.........................and it won't be the government.

Maximum distributions
 

It all depends on your age. They've already passed a law that you don't have to withdraw until you're 72 years old . Some not there yet

I’m guessing the Clintons owned lots and lots of property back then

1957. We were in a recession. But I do favor serious cuts in federal spending to reduce the national debt, but more importantly to reduce the debt to GDP ratio.

You would be correct. And Newt ran the House, where all budgets originate.

Nesara/ Gesara and the Quantum Finance System.
 

This system, if all is to be believed will mean the end of the I.R.S. and will lead to many other benefits that the elites did not want the public to know about. You will not find any mention on Main stream media, T.V. or press, but check out on You tube or other sites that are available, there is a lot happening that you need to know about, it is a game changer.

We all have to be on alert. Several "leaders" are supporting the slow elimination of Social Security and Medicare...which, by the way, we have all paid into. While many of us can live off of our retirement savings or pensions, many people, including those who were small business owners, cannot. Be sure to get your news from more than one outlet.

That's true, but if you wait until 2023 for your first distribution (technically your 2022 distribution) you will also be required to take another RMD by no later than December 31, 2023. Personally, I'd rather have the smaller effect on my tax bill by taking the RMD in each year, not both distributions in the same year.

Correct, but if your marginal tax rate doesn't change, it doesn't really matter.

You're right on with your thoughts, this is the start of the new world and reset.

Like this or not. It is like a 401K. Another way to push taxes paid into the future or get your inheritors to pay the taxes. Would suspect that most of us will probably pay less on a % basis than our old payroll tax rate.

Remember when my now deceased father would get a large deposit into his checking account. For 10 years I had to explain it to him.

Check with your Financial Advisors ….If you can find them… Remember these bills have along way to go before they become Law!

For some of us, the reason that we took it earlier happened to be a wise move before this announcement anyway, since our money was worth more in January than it is today. If our withdrawal isn’t taxed that would be an even greater advantage. Unsure if that’s the case.

It was a few years after the 105th and 106th Congresses lowered taxes.

Why should I have to support reckless spending? We shouldn’t be spending or try to spending as much as we are especially while going into a recession. You have to ask, what got us into this high inflation/recession era? It’s all the reckless spending!

The National Debt has not been reduced since 1957. Do you mean budget deficit?

The last time they changed the RMD age from 70 1/2 to 72 they allowed anyone who had taken a RMD already to pay it back in the year if the RMD was taken based upon the earlier requirement- effectively cancelling the withdrawal.

There are 535 people in Washington who are to blame for all of the problems in this country including deficit spending and the debt. Somehow they have all
gotten their constituencies to believe that it's all the other guy's fault.

The only thing that will ever fix this is term limits for congress.

As I understand it, if the annual budget deficit is negative, then the debt is reduced. I think we had a negative deficit at some point during the Clinton years. It occurred between 1998 and 2001.

What about the people who voted for them? Don't they share some of the blame?

Term limits
 

Now, here is a good idea. Term limits! I don’t see a logical way for that to happen during my lifetime. Wait, you can vote them out. It’s easy to check how long served but impossible to get enough voters to cross party lines to vote them out. Stuck again.

The Key
 

That’s the key! What other wasteful, pork barrel, deficit building crap is in the bill?!!

Agree
 

Like spending less. Lots and lots and Trillions of less.

National debt, who cares about that….:mad:

Not for me. I hope this goes through.