Retirement Account Taxation & Investment Choice Mandate

Economy
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  1. No tax or Lower Tax on Retirement Investment Accounts for Seniors: Make 401k & Traditional IRA withdrawals subject to long-term capital gains tax as opposed to ordinary income tax — OR — Increase standard deduction to $47k (single)/$63k (head of household)/$94k (married) for seniors.

  2. Eliminate RMDs

  3. Adding a federally mandated choice to invest in individual stocks in employer 401k/403b plans will help magnify returns and mitigate the restrictive constraint to only invest in index ETFs and plan specific mutual funds. This limits the ability for most to attain the American Dream and significantly increases opportunity cost.

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I have never heard a good reason for the RMD. I suspect it is there so that there is less money to pass on to our beneficiaries, i.e. keep the working class poor. I just turned 73 so I will have to abide by the RMD. It was not easy for me to figure out when I needed to take the RMD and what year end valuation was used. The IRS was not helpful at all, fortunately, the company I have my IRA at was helpful.

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