This column discusses some of the retirement loopholes that lawmakers would like to get rid of in order to raise more revenue for the Federal government. The three main loopholes that are under threat are Roth IRA conversions, stretch IRAs, and ‘aggressive’ social security tactics. President Obama has proposed limiting future Roth conversions to pre-tax dollars only in his 2016 budget. Lawmakers have introduced bills to end the stretch IRA and require non-spouse beneficiaries to withdraw money within five years. The ‘claim now, claim more later’ technique used by married couples to increase social security payouts is also being reviewed. Members of congress would also like to get rid of the “file and suspend” trick.
See Kyle E. Krull, “Stretch IRAs” and other Retirement “Loopholes” Targeted, Wealth Management, July 16, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
