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McCain Offers New Proposal?
Before launching attacks on Obama, he did offer something I'd not heard before.
It seems that when retirees hit 70.5 years old, they MUST cash in their IRA, etc. funds. Obviously, cashing in any stock funds this week amounts to a serious loss for that senior citizen. McCain proposed a suspension of this rule.
Good idea on the face of it. Any discussion? Should Obama applaud and adopt the idea?
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Comments (2)
I can't think of why not.
But Gubbament's gotta get its dollars somehow, right? God forbid there ever be any untaxed income.
Maybe allow seniors to keep their money in the market, but begin taxing it after 70ish? After all, the primary push to get 'em out of the traditional IRAs is to begin collecting tolls on all that money they've been making. Why can't both parties be happy?
October 10, 2008 11:35 AM | Reply | Permalink
Ok here's the rule at 70.5 you must start taking withdrawals from your traditional IRA, you do not cash out the entire amount unless you so choose. This is not the case for a Roth. However this does not mean you need to spend you may re-invest, not in a traditional, but a Roth. There are some eligibility rules and income amounts you do need to follow.
A good explanation here:
http://money.cnn.com/2007/08/21/pf/expert/expert_tuesday.moneymag/index.htm
October 10, 2008 11:41 AM | Reply | Permalink
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