facebook-pixel

Letter: What about mandatory withdrawals?

(J. Scott Applewhite | The Associated Press) The Capitol is seen in Washington, Monday, July 31, 2017. Most Senate Democrats and independents said Aug. 1, that upcoming legislation to rewrite the tax code should make sure the middle class doesn’t pay more. They won’t support any upcoming GOP effort to overhaul the U.S. tax code that delivers tax cuts to “the top 1 percent” or adds to the government’s $20 trillion debt.

(J. Scott Applewhite | The Associated Press) The Capitol is seen in Washington, Monday, July 31, 2017. Most Senate Democrats and independents said Aug. 1, that upcoming legislation to rewrite the tax code should make sure the middle class doesn’t pay more. They won’t support any upcoming GOP effort to overhaul the U.S. tax code that delivers tax cuts to “the top 1 percent” or adds to the government’s $20 trillion debt.

As a leading-edge member of the baby boom generation, who is looking at mandatory withdrawals next year at 70½ years old, I think the government has forgotten about this income.

This year and for the next 30 years people will be contributing at least 4 percent of their savings to their taxable income and be taxed on it. As a leading-edge baby boomer, I will be increasing my income every year, as I will be required to take increasing amounts from my, IRA and 401k each year. Everyone behind me will be doing the same. This money will go to funding the deficit reduction, or funding new programs.

Nowhere, that I have seen, is this new income projected in any projections. The government has the ability to project this income, based on deductions to income from the ’80s on to now, for all contributing to IRAs and 401ks. They can assume a conservative 3 to 4 percent growth on those deductions to project an unexpected “phantom” workforce (IRA and 401K income) coming into the taxable income of our country.

Garth Pellett, Sandy

Support free news for Utah

sltrib.com is now free to access — no subscription required. We made this decision because we believe access to trustworthy, independent news shouldn’t depend on what you can afford — especially as misinformation and AI-generated content continue to rise.

Free to read doesn’t mean free to produce. Our reporters show up every day to ask hard questions and hold powerful institutions to account. That work takes resources. As a nonprofit newsroom, we rely on support from people who believe it matters. Make a donation today to fund local news that serves Utah communities.

You can help us bring more local news to more communities today.

$15$25$35

MOST VIEWED

By Garth Pellett | The Public Forum