I have an alternative to some of those pork barrel projects that the Obama congress has recently approved as part of the Stimulus Plan. You know the ones I am referring to - that do nothing to stimulate the economy - like funding more social services and roads to nowhere and giving raises to bureaucrats
New law, Boomer Relief Bailout retroactive to Jan 2009: Anyone eligible for IRA distributions, whose taxable income from all sources is less that 250K per year will be allowed to take ordinary distributions up to $20,000 from an IRA/401K tax free!
The effect of this law would free-up money that many retirees are rat-holing because they are reluctant to expose it to IRS taxes. The Gov't wants to stimulate the economy, and this would inject billions of dollars into the economy now - instead of waiting for it to be distributed years down the road, squandered on nursing homes and depends.
In the long run this would cost a lot less than imposing new taxes on a beleaguered generation. This plan would also afford some relief to the low-middle income group (many of whom have already lost up to half of their retirement nest egg in the past 18 months.)
Many people would be eager to take out a "tax free" $20K and take a trip, put a down payment on a house, install replacement windows or buy a car!
This would help to save America! Are you listening John Kerry? Barney Frank? Ferris Beuller?
2 comments:
Or how about this? Relax the rule that you have to start taking money out of your IRA at 70 1/2 years of age. Why should I be forced to take out money at a (hopefully) stock market low?
I believe one of the proposals being discussed was to change the valuation of the IRA portfolio to be more mark-to-market. This would keep your forced distributions proportional to your nestegg and life expectancy. The economy needs you to take some money out now and go buy some stuff, old timer.
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