Fox Business’s Stuart Varney said President Donald Trump is planning to sign an executive order to help baby boomers save for retirement by lessening their tax burden.
“When you reach the age of 70-and-a-half, the government says you’ve got to start taking money out of your IRA or your 401(k). Whether you want to or not, you’ve got to,” Varney said on “Fox & Friends” Friday. “About 4 or 5 percent of your retirement savings have got to come out. It’s taxed. When it comes out of those accounts, you pay tax.” (RELATED: Trump’s Deal With Mexico Is A Political Win For The White House And An Economic Win For America, Says Stuart Varney)
“A lot of baby boomers still are still working at 70-and-a-half. You’re going to pay your regular tax on your income and then you’re going to pay a fortune on the money that’s had to come out of your 401(k) And your IRA. That’s bad news for aged retirement people,” he continued.
Varney said if Trump raises the age to between 72 and 75, older retirees will be able to save more money and it will send out a ripple effect to the 55 million Americans with 401(k)’s and the 30 million people who have an IRA.
“That means aging baby boomers can save tax-free for longer and that is a very good thing,” he added. “Fifty-five million Americans have a 401(k), 30 million have an IRA.”
Varney also said the government doesn’t want people building up personal wealth that can be passed down, because it would mean they have less money to tax for their coffers.
“They don’t want you to build up a large chunk of money to pass on to your heirs. They don’t want you to do that,” Varney continued. “You may save for a lifetime but they don’t want that part of your savings to go to your heirs.”
Trump will also try to break the big corporation monopoly on 401(k)’s and allow small businesses to form groups that provide the same benefits, according to Varney.
“At the moment 401(k)’s are pretty much restricted to major corporations, big companies. The president wants to extend that to groups of small companies. Another very good move,” Varney said. “Extending pension planning and pension money to a larger group of people.”
“There are rules which are strict, the president wants to loosen those rules about who can get together,” he concluded.
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