People who have saved $1 million or more in an IRA and plan to pass
it on to someone other than their spouses should consider doing Roth
conversions, said Ed Slott, president of Ed Slott & Co., which
specializes in IRA education and training. For instance, if their children inherit the IRAs, they would likely
receive them and face the tax consequences during their prime earning
years. "It's a big tax hit," Mr. Slott said. "Beneficiaries can let the money accumulate tax-free in a Roth." Investment advisers are going to put a premium on Roth conversions. ...
Roth conversions also would benefit the government, which would get
tax revenue more quickly than it would under IRA distributions. But the
change in stretch IRA policy under the SECURE Act will upset many estate
plans that were written based on children being able to hold onto IRAs
for their lifetimes. "I call this section of the SECURE Act the broken promise," Mr. Slott
said. "It's like they changed the rules in the ninth inning."
More here.
79 Republicans in the US House voted for this POS hidden in the bill entitled "National Law Enforcement Museum Commemorative Coin Act".
How would you even know?
By forcing the hands of millions of older Americans with estate plans in place for their non-spouse beneficiaries, the government obviously hopes to reap a windfall of tax revenue generated by their conversion of tax-protected traditional IRAs and 401k plans into taxable Roths, knowing the temporary umbrella provided by the lower Trump tax rates expiring in ten years will be an added incentive.
These bastards are wily.
