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3 posters

    Economy

    Ladyelaine
    Ladyelaine
    Ladyelaine


    Posts : 895
    Join date : 2016-08-27
    Location : Suwannee Springs, Florida
    • Post n°1

    Economy Empty Economy

    Post  Ladyelaine Wed Mar 25, 2020 2:25 pm

    It seems to me that one way to both help senior citizens & stem the sell off of stocks would be to suspend the required minimum distribution from IRAs for this 2020 year for all individuals whose gross income in 2020 (including the required minimum distribution) would amount to less than $100,000. That one measure would help those whose IRAs consist mainly of stocks from their former employers converted 401s. If not required to take a distribution for just one year most would not be selling stocks they want to keep because they depend on the dividends to survive. Not only would it help those elderly but also help the companies in which they have stock. I know the government wants their taxes on these distributions and that recent legislative actions will assure they get it even quicker but if seniors could opt out for one year it would boost the stock market overall.


    If there is a flaw in my above reasoning I hope someone will point it out to me. If my reasoning has merit I hope those who read here but do not post will point it out to their elected officials.
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    Sunshine16
    Sunshine16
    Sunshine16


    Posts : 626
    Join date : 2016-08-28
    Location : Virginia
    • Post n°2

    Economy Empty Re: Economy

    Post  Sunshine16 Thu Mar 26, 2020 3:54 am

    The only thing I really know about all that is we lost money, not as much as some but in retirement it sucks.
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    Psycho144
    Psycho144
    Psycho144


    Posts : 1082
    Join date : 2016-08-26
    Age : 84
    • Post n°3

    Economy Empty Re: Economy

    Post  Psycho144 Thu Mar 26, 2020 8:51 am

    I have nothing to lose except retirement and SS no investments.
    So let er rip.


    I live day to day. after working 35 yrs in a paper mill and helping to build I-75 and 3 yrs US Army.


    Psycho
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    Ladyelaine
    Ladyelaine
    Ladyelaine


    Posts : 895
    Join date : 2016-08-27
    Location : Suwannee Springs, Florida
    • Post n°4

    Economy Empty Re: Economy

    Post  Ladyelaine Thu Mar 26, 2020 11:12 am

    The assets of most retirement pension funds are heavily based in stock market funds.


    The required minimum withdrawals from IRAs for seniors is based on the value of the IRA on December 31 of the previous year. In a "for instance for easy figuring  extreme example" if the stocks in that IRA were valued at $100,000 on 12/31/19 but now are valued at only $50,000, and based on age that person's RMD is $10,000 for this year but the reinvested dividends amount to only $5,000 and that is all the person is able to withdraw without selling their original stock for whatever the value is now, they will have a shortfall of $5,000 and will be required to pay a 50% penalty tax of $2,500 in addition to their other taxes when they file their 2020 return.


    I'm thinking if the required minimum for this one year could be suspended without having to pay a 50% penalty tax for not meeting the minimum withdrawal for this one year that it would help many seniors to withdraw only what they need to meet expenses during this national emergency without them having to sell their stocks in order to meet the required minimum withdrawal. Hopefully this could be done without altering the RMD percentage schedule, just skip the 50% penalty for this one year.
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    • Post n°5

    Economy Empty Re: Economy

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