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A synopsis of HR8331 seems to defer start date not for accounts already being withdrawn.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