{"id":1885,"date":"2019-06-12T20:37:17","date_gmt":"2019-06-13T00:37:17","guid":{"rendered":"http:\/\/melange.dmaculate.me\/?p=1885"},"modified":"2023-07-28T16:19:53","modified_gmt":"2023-07-28T20:19:53","slug":"provisions-of-bill-that-sailed-through-congress-make-employees-vulnerable-to-dodgy-401ks-and-create-irs-money-grab","status":"publish","type":"post","link":"https:\/\/melange.dmaculate.me\/home\/2019\/06\/12\/provisions-of-bill-that-sailed-through-congress-make-employees-vulnerable-to-dodgy-401ks-and-create-irs-money-grab\/","title":{"rendered":"Provisions of bill that sailed through Congress make employees vulnerable to dodgy 401(k)s and create IRS “money grab”"},"content":{"rendered":"

\"\"<\/a><\/p>\n

\"\"<\/a>A large bipartisan majority of the US House of Representatives passed the SECURE Act<\/a>. The bill has rule changes that many would welcome as well as some vexing provisions<\/a>. The New York Times<\/em> lists some of the bill’s highlights<\/a>.<\/p>\n

The otherwise relatively unobjectionable bill creates the potential of 401(k) investments being lost to badly managed or fraudulent annuities<\/a>.<\/p>\n

Section 204 gives a safe harbor to 401(k) plan sponsors who select so-called lifetime income products, another word for annuities, to appear among offerings to workers. This would mean that, if an employer picks an annuity provider and it goes out of business or rips off workers, they would not be able to sue the employer afterward. That could incentivize companies to find fly-by-night annuity providers\u00a0that give good deals to the companies for business, making their money by ripping off the firm\u2019s workers before filing for bankruptcy.<\/p>\n

The lack of a safe harbor has been the primary hurdle to getting annuities into 401(k) offerings, said J. Mark Iwry, former senior adviser at the Treasury Department during the Obama years. \u201cIt\u2019s the single most frequently mentioned obstacle by plan sponsors,\u201d said Iwry, who is now a nonresident senior fellow at the Brookings Institution.<\/p><\/blockquote>\n

The piece by David Dayen<\/a> at The Intercept<\/em> describes the likely role of regulatory capture in the making of this imminent law. The Chairman of the House Ways and Means Committee is Massachusetts Democrat Richard Neal…<\/p>\n

The annuities industry is a $235 billion-a-year business, with brokers enjoying kickbacks like resort vacations and luxury watches, according to a 2015 report<\/a> from Sen. Elizabeth Warren, D-Mass. Insurance companies have longed to tap the trillions of dollars sitting in 401(k) plans for annuities.<\/p>\n

That would include some of Neal\u2019s biggest donors<\/a>…<\/p>\n

….<\/p>\n

All in all, Neal picked up $30,000 last quarter in donations from companies and trade groups with a direct interest in the SECURE Act.<\/p><\/blockquote>\n

Then there’s Forbes<\/em> contributor James Lange<\/a>, whose hackles are raised because…<\/p>\n

A more appropriate name for the bill would be the Extreme Death-Tax for IRA and Retirement Plan Owners Act, because it gives the IRS carte blanche to confiscate up to one third<\/em> of your IRA and retirement plans.\u00a0 In other words, it\u2019s a money grab.<\/p><\/blockquote>\n

Should you be concerned about “an IRA or a retirement plan that you were hoping you could leave to your children in a tax efficient manner after you are gone,” you’d best read his gory descriptions<\/a> of the travesties of the SECURE Act. Mocking aside, if the beneficiaries of your bequeathments might have to rely on their inheritances, they’d be thankful for your attention to said tax efficiency.<\/p>\n","protected":false},"excerpt":{"rendered":"

A large bipartisan majority of the US House of Representatives passed the SECURE Act. The bill has rule changes that many would welcome as well as some vexing provisions. The New York Times lists some of the bill’s highlights. The … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[2,188,297,301,318],"class_list":["post-1885","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-401k","tag-ira","tag-regulatory-capture","tag-retirement-plans","tag-secure-act"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":1671,"url":"https:\/\/melange.dmaculate.me\/home\/2011\/05\/28\/draconian-anti-piracy-censorship-bill-passes\/","url_meta":{"origin":1885,"position":0},"title":"Draconian Anti-Piracy Censorship Bill Passes Senate Committee | TorrentFreak","author":"aslam","date":"May 28, 2011","format":false,"excerpt":"Via Scoop.it - Rights & LibertiesUpdate: Senator Wyden placed a hold on the PROTECT IP Act and released the following statement. \u201cConsistent with Senate Standing Orders and my policy of publishing in the Congressional Record a statement whenever I place a hold on legislation, I am announcing my intention to\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1684,"url":"https:\/\/melange.dmaculate.me\/home\/2011\/05\/11\/revised-net-censorship-bill-requires-search\/","url_meta":{"origin":1885,"position":1},"title":"Revised ‘Net censorship bill requires search engines to block sites, too","author":"aslam","date":"May 11, 2011","format":false,"excerpt":"Via Scoop.it - Rights & LibertiesLast year\u2019s controversial COICA bill is about to be replaced with the updated PROTECT IP Act, which extends its censorship to search engines.Show original","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1403,"url":"https:\/\/melange.dmaculate.me\/home\/2011\/10\/27\/protect-ip-act-breaks-the-internet\/","url_meta":{"origin":1885,"position":2},"title":"PROTECT IP Act Breaks The Internet","author":"aslam","date":"October 27, 2011","format":false,"excerpt":"Via Scoop.it - Rights & Liberties Tell Congress not to censor the internet NOW! - http:\/\/www.fightforthefuture.org\/pipa PROTECT-IP is a bill that has been introduced in the Senate and the House and is moving quickly through Congress.Show original","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1509,"url":"https:\/\/melange.dmaculate.me\/home\/2011\/08\/05\/house-advances-internet-surveillance-bill-blog\/","url_meta":{"origin":1885,"position":3},"title":"House Advances Internet Surveillance Bill – Blog – OpenCongress","author":"aslam","date":"August 5, 2011","format":false,"excerpt":"Via Scoop.it - Rights & LibertiesUnder the title the \u201cProtecting Children from Internet Pornographers Act\u201d, Congress is advancing legislation that would make it easier for law enforcement to access information about the online activities of all Americans, regardless of whether or not they are suspected of having committed a crime.Show\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1814,"url":"https:\/\/melange.dmaculate.me\/home\/2018\/09\/26\/aspects-of-aadhaar-indias-biometric-id-struck-down-as-unconstitutional\/","url_meta":{"origin":1885,"position":4},"title":"Aspects of Aadhaar, India’s biometric ID, struck down as unconstitutional.","author":"aslam","date":"September 26, 2018","format":false,"excerpt":"https:\/\/www.livelaw.in\/breaking-sections-33247-national-security-exception-gone-private-entities-cannot-demand-aadhaar-data\/ (Includes full text of the decision.) Sections 33(2),47 & 57 Of Aadhaar Act Struck Down; National Security Exception Gone; Private Entities Cannot Demand Aadhaar Data [Read Judgment] | Live Law Among the aspects that were ruled unconstitutional: Disclosure of information \"in the interest of national security\" without authorization from\u2026","rel":"","context":"In \"Aadhaar\"","block_context":{"text":"Aadhaar","link":"https:\/\/melange.dmaculate.me\/home\/tag\/aadhaar\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/melange.dmaculate.me\/wp-content\/uploads\/sites\/2\/2018\/09\/aadhaar-1537929142.jpeg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/melange.dmaculate.me\/wp-content\/uploads\/sites\/2\/2018\/09\/aadhaar-1537929142.jpeg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/melange.dmaculate.me\/wp-content\/uploads\/sites\/2\/2018\/09\/aadhaar-1537929142.jpeg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/melange.dmaculate.me\/wp-content\/uploads\/sites\/2\/2018\/09\/aadhaar-1537929142.jpeg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":1402,"url":"https:\/\/melange.dmaculate.me\/home\/2011\/10\/27\/stop-the-internet-blacklist-legislation\/","url_meta":{"origin":1885,"position":5},"title":"Stop the Internet Blacklist Legislation","author":"aslam","date":"October 27, 2011","format":false,"excerpt":"Via Scoop.it - Rights & LibertiesThe Internet Blacklist Legislation\u2013 known as PROTECT IP Act in the Senate and Stop Online Piracy Act (SOPA) in the House - is a threatening sequel to last year\u2019s COICA Internet censorship bill. 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