The PPT – that’s the Plunge Protection Team. We first read this acronym on The Big Picture blog, but thought it was a joke about brilliant stock traders who move the stock market back up after or during a big downward plunge, but after viewing many references on the Web, we think there might be a real one.
Sure, that seems a bit far-fetched, but lately we’ve begun to wonder. Then we had a brainstorm. Now, as a certified senior, we are forced to take money out of our IRA, so we think it is to enhance government revenue.
The government calculates the Required Minimum Distribution by multiplying the total amount of the value of the IRA on Dec. 31 each year times a fraction. The denominator of the fraction gets smaller every year, requiring a larger percentage of money to be withdrawn each year. That fraction, we believe, represents the number of years we have left on earth.
That means the govt WANTS IT ALL. We wanted to have that money to take care of emergency medical problems. Too bad – Uncle US wants it. Think of all the new taxable income that people with those IRAs who are older than 70-1/2 will now have to report and pay taxes on, if they don’t know about the loophole or don’t want to avail themselves of the loophole.
The only way to get around this (increasing your taxable income) is to give it away to an approved charitable organization. Congress tried to eliminate that “loophole,” but so far it has not succeeded. We’ve only had to do this twice, but have benefited nicely from the provision. We get to support our favorite, local charities and get lots of love in return.
Do you get any love from the US Govt when you pay your taxes? Didn’t think so.