A retirement bill currently under negotiation in the Senate gives rich Americans a tax break by bringing forward the payment schedule to remain revenue-neutral within the 10-year budget window, but will ultimately add to the national deficit unless a future Congress raises taxes.
The Senate’s Enhancing American Retirement Now (EARN) Act raises the age at which taxpayers must start making withdrawals from 72 to 75, allowing them three extra years of tax-free growth.
Most Americans start living off their retirement accounts well before the age of 75, so the bumped-up age requirement really only affects the wealthy, who often use their retirement accounts as tax-sheltered investment vehicles rather than as savings to cover the cost of living in old age.
The bill throws another bone to rich taxpayers — and the Wall Street fund managers who look after their money — by allowing them to deposit an additional $10,000 a year into their retirement accounts beginning between the ages of 60 and 63. Setting aside an extra $10,000 a year is something most Americans can’t afford to do. READ MORE...
