he wealthy elderly, especially the very, very wealthy elderly.
That would seem to be exceptionally short sighted as such a delay is likely just to increase the taxes paid on that income - for the owner or the bene.
Certainly the very very wealthy have had decades in which to structure their finances to reduce the tax implications of RMDs at 70 1/2 - and now 72. Seems very little to be gained by those same individuals delaying another 3 years.
Hawkwin
Who assumes that the vast majority of the very wealthy have most of their wealth outside of IRA accounts.
<<t<he wealthy elderly, especially the very, very wealthy elderly.>>>
“That would seem to be exceptionally short sighted as such a delay is likely just to increase the taxes paid on that income - for the owner or the bene.”
Yes, and many people are short-sighted. Lots of studies about delayed gratification and the inability of many to wait. Also I think many (who are short-sighted) do not want to pay the tax, it pains them, and do not worry about the benes. paying more in tax.
"Certainly the very very wealthy have had decades in which to structure their finances to reduce the tax implications of RMDs at 70 1/2 - and now 72. Seems very little to be gained by those same individuals delaying another 3 years.
Hawkwin Who assumes that the vast majority of the very wealthy have most of their wealth outside of IRA accounts."
I agree that those with family wealth have most of it outside of IRAs (and 401ks); it is the people in the people in their 40-50s, first generation wealthy, especially if company match was paid in shares or stock options and those who can buy IPOs in their accounts who have very large balances in their tax deferred retirement accounts. IIRC Jeff Bezos’s father used IRA money to help fund Amazon and has (or had) multi-multi billions in his IRA.
“I agree that those with family wealth have most of it outside of IRAs (and 401ks); it is the people in the people in their 40-50s, first generation wealthy, especially if company match was paid in shares or stock options and those who can buy IPOs in their accounts who have very large balances in their tax deferred retirement accounts. IIRC Jeff Bezos’s father used IRA money to help fund Amazon and has (or had) multi-multi billions in his IRA.”
and probably will make a gazillion dollars in charitable donations from said IRAs if not already doing that, and when RMD starts will donate a large portion or all of RMD to charity reducing taxes on it to zero.
same for appreciated stocks - will go to charitable foundations - and might live on dividends and cap appreciation if he sells anything to fund his lifestyle.