The Flinchum File
Thoughtful Economic Analysis and Existential Opinions



Wouldn’t it be great if you could buy a nice present for your friend and then send the bill to THEIR children?  Congress just did that and did it on a bipartisan basis!

It has the pleasant name of Setting Every Community Up for Retirement Enhancement Act or SECURE.  It reduces the tax burden on certain Boomers and increases the future tax burden on Millennials.

While there are the usual technicalities, Boomers no longer have to start taking Required Minimum Distributions (RMDs) at age 70 1/2 and can wait until they are 72 years old, deferring the income taxes payable on their RMD.  In addition, they will no longer be prohibited from making additional contributions to their IRA.  This reduces taxes paid by Boomers.

Today, when a non-spouse inherits an IRA, their RMD is based on their life expectancy, which might be 30-40 years.  Under SECURE, they will be required to drain their parents IRA within ten years.  That means they’ll probably have more taxable income during their working years and less during their retirement years.  This increases taxes paid by Millennials!

It is small wonder why Millennials hold the Greatest Generation and the Boomers responsible for dumping our $17 TRILLION national debt on them.

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