Congress Appears to Be Seriously Considering Bill That Would Greatly Impact Inherited Retirement Account Payout Terms
Update: Shortly after this article was posted, the House voted 417-3 to pass the SECURE Act with the Kiddie Tax fix described in this article. The Wall Street Journal indicates that a GOP aide informed them that the Senate plans to vote on this just passed House version of the Bill, rather than vote on the similar bill that chamber was considering.[1]
It’s always risky to put much stock in a bill in Congress that hasn’t yet passed a single chamber, but it’s beginning to look like the SECURE Act (“Setting Every Community Up for Retirement Enhancement” - Congress is back to full word acronyms...) might actually move forward at this point, with something similar to it being enacted into law.
When the §529 provisions were pulled it looked like that might cause Republican support to go away (and thus kill any chance in the Senate), but the addition of a full Kiddie Tax fix (roll back the provision to the pre-TCJA version now that unintended consequences are coming out of the woodwork outside of just the Gold Star families problem) and the apparent endorsement of ranking minority member and previous Ways & Means Chair Kevin Brady seem to have gotten both sides on board.
Read More