Pushing Grandma Off a Tax Cliff
Wall Street Journal (10/09/02) p.A18

The House Ways and Means Committee has passed two bills intended to assist investors in the midst of the down market by raising the amount of capital losses that are tax deductible each year and raising the age at which people must begin withdrawals from tax-deferred accounts. The current withdrawal age makes some seniors sell assets at a loss and pay taxes on the loss, and the accounts are the main retirement savings vehicles for many middle-class citizens. Getting rid of mandatory distribution completely would help keep seniors from having to rely on government aid, and taxes would still be paid when the senior or heirs cash out the plans, according to this commentary.


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