The addled brains and/or corporate lapdogs in Congress just removed one of the most critically important avenues that debt-strapped middle class millennials had of obtaining a decent standard of living.
By Pam Martens and Russ Martens of Wall Street on Parade.
Five days before Christmas, while the impeachment debate distracted voters, the President signed into law the so-called Secure Act – which was a sickening bi-partisan attack on the wealth-building capability of the middle class.
Making the dirty deed even more Grinch-worthy, the attack on the assets of the middle class comes after the Trump tax overhaul in 2017 gave a windfall to the super wealthy by doubling their estate tax exclusion from $11 million per couple to $22 million. Now someone has to pay for that and both Democrats and Republicans in Congress have stealthily decided it’s going to be Millennials – who are already buried under student loan debt with a meager average net worth of $8,000.
The only people that will gain security from the Secure Act are the Wall Street wealth advisors who are already looting two-thirds of the average 401(K) over a worker’s career through fees; the insurance industry that browbeat members of Congress into signing the legislation into law and got an insurance annuity payout option included; and the lawyers who will rack up millions of new billable hours from rewriting trusts that no longer make any sense as a result of this wholesale sell-out of the middle class in America.
Under the mantra of increasing 401(k) participation for workers and adding a paltry year and a half to when workers must take mandatory distributions from their sheltered retirement accounts (from age 70 ½ to age 72), the addled brains and/or corporate lapdogs in Congress just removed one of the most critically important avenues that the middle class have for accessing the benefit of tax-sheltered compounding over decades in order to maximize wealth building for those who can’t afford estate planners, tax attorneys and CPAs…