Brady's new introduction of the retirement pension law/Carlos Pueblo

 Brady's new introduction of the retirement pension law/Carlos Pueblo

Houston north suburban, the Woodland, U.S. Congressman Kelvin Brady will introduce a new law to regulate our retirement pension withdraw law. He has the support of the Democrat, the chairman of the Ways and Means Committee. I read the headline on the Market Watch and the Wall Street Journal, etc. for the details. I have met him in the 80's when I was referred to joint group of executive directors of the Chamber of Commerce monthly gathering. This is a fraternity and sorority group of the chambers surrounding the Metropolitan Houston except the huge Houston Chamber of Commerce called Houston Partnership. He was the president of that group and I was permitted to join their meeting as a representative of a newly formed Taiwanese Chamber of Commerce in Houston. He went to represent the Woodlands district to the U.S. Congress and was raised to the chairman of the Ways and Means Committee thereafter. After 2018, the Republican lost the majority he becomes the ranking member. He plans to be retired in 2022.

There are two major parts of his introduction, first, to postpone the age of the requirement of the minimum distribution age from 70 to 72 if your total pension fund is less than $100,000. He further suggests to postpone to age 75 or even abolish the RMD. This year, it is postpone for the requirement according to an executive order by the President due to the Pandemic. I have been thinking the reasons why IRS offers such favor. I understand the IRS is a silent share holder of our pensions funds. The RMD is the way for IRS to cash out its share. Perhaps the U.S. is very considerate to let tax payers delaying RMD income for one year as a good policy to fight the recession. Yet I think the favor is insignificant.

At age 70, $100,00 /29 is the figure of the RMD or even less. Such income at most will fall in to 15% income tax bracket. His new introduction will only gain a beautiful name of the bipartisan effort during the hostile environment in Washington, D.C.

The second of his effort is to enroll employee to the company's 401k and something that I think every employed people can get his retirement plans to utilize to the most, such as the IRA, HR-10, simple IRA in addition to the 401k type of pensions. New Brady's law will not be like the Keogh plan which has been the major benefit of my pension plan in the 80's. Senator Keogh has introduced HR-10 for the proprietor to contribute 25% of his adjustable gross income in order to make up the lack of the corporation 401k set up.