Problems with mandatory withdrawl?

[question everything]

Not in that category, yet, but my understanding is that seniors (older than 70?) have to withdraw a mandatory amount from their IRA and 401K before the end of the year and that the sum is based, among other things on the value of the portfolio at the end of 2007. Which can really make a hardship of selling assets that have lost so much of their values.

I think that Congress needs to suspend this rule for 2008, at least.

One would think that the AARP would be lobbying hard.

After all, in the past years Congress waited for the last minute to tweak the Alternative Minimum Tax so I won't be surprised if the same will happen with this thing.

[lapfog_1]

1. I believe that Obama has already promised to rescind this rule. - n/t

[dipsydoodle]

2. Blimey

I wondered what you meant for minute. :rofl:

[Jackpine Radical]

4. I dunno why seniors would have to worry much about that stuff.

Not like yer gonna knock the ol'lady up or anything...

[Veritas_et_Aequitas]

3. I don't know... Congress probably wants its tax money.

I don't see this Congress giving it up without a fight.

[question everything]

5. Changing anything is like trying to turn the Titanic

but, what they can do is postpone this mandatory withdrawal, to, say, April 2009 and to base the amount on Dec. 2008 instead of 2007 values.

[dixiegrrrrl]

6. My understanding is that age 72.5

you have to choose from several withdrawal plans, one of which you can take it all out.

You can take it all out anytime after 59.5 years of age.

At the moment, most retirement funds have not much left unless one DID take out the money.


Good news...the long term capital gains earnings tax will be about quite low for most retirees
for FY 2008, maybe 2009.

[question everything]

7. Yes, I think it will stay the same for the under $200/250K

and, as being hinted today, even for the over this income, for now.

[JPerk87]

8. .

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