Warning to pensioners

ancona

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There have been a great many plans offered up right here at home that include seizure of all 401K retirement plans along with private pensions. All of them naturally assert that it is in the best interests of the pensioners that this be done since everyone knows that our government knows best and that they would never cheat us out of anything. There are trillions of dollars in private money that the democrats would love to get hold of.

Just think of all the altruistic programs that could be invented if they could just borrow that money for a short time.

<sarc>
 

pmbug

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In the UK (for now):
The Treasury is expected to clamp down on trust schemes used by wealthy families to shield their estates from inheritance tax. Currently, this tax applies to the value of an estate of more than £325,000 – or £650,000 for couples.

The trusts are established to effectively remove assets from their owners' estates while they are alive so that, on their death, tax does not apply. Many different assets can be held in a trust, including property, financial assets such as shares and insurance policies that will pay out on death.

Trusts that are valued at more than £325,000 – the "nil-rate band" – are hit with a 6pc tax charge every 10 years. In order to get around this, thousands of families have set up several trusts to avoid any single trust going over the tax threshold.

For instance, if a family were to set up three trusts, each with assets of £200,000, they would not pay the charge.

But The Daily Telegraph understands that HM Revenue & Customs (HMRC) is planning to stop families setting up multiple trusts. According to industry sources, the Government will announce plans to levy a 6pc charge on the total amount of assets held across all trusts in its Autumn Statement. This change is expected to come into force in the Finance Bill next year and would apply to trusts already in existence, not just new ones.
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http://www.telegraph.co.uk/finance/...-face-new-tax-grab-on-inheritance-trusts.html
 

pmbug

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The Secure Act, which was signed earlier this month, changes the way beneficiaries will receive money from inherited retirement accounts, but not everyone is in danger of a big tax hit.

The new rules say beneficiaries of qualified retirement accounts, such as individual retirement accounts and 401(k) plans, need to withdraw all of the money out of those accounts within 10 years, instead of over their life expectancy as was previously allowed. There are no required minimum distributions within that time frame, but the account balance must be zero after the 10th year.

Stretching the withdrawals over the beneficiary’s life expectancy — the so-called stretch IRA provision — meant paying less in taxes, whereas the new rule threatens to result in higher tax bills, especially if the inheritor is in her peak earning years. ...
https://www.marketwatch.com/story/t...ted-by-the-new-rules-2019-12-27?mod=home-page

It's not outright confiscation, but govco is going to vacuum up a larger share of that pie. Very sneaky.
 
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