IRA rule hurts non-rich

A new rule for individual retirement accounts was enacted by Congress last year. As of 2015, only one IRA per person may be rolled over per year. Additional IRAs must either remain at poor interest rates or be taken as distributions, and taxed, regardless of previous tax rules.

This congressional act removed the last remaining opportunity for lower-middle-class, retired persons (who can’t afford uninsured investments or gambling in the stock market) to shop for better rates of return on their retirement investments.

This shifts the money that we ordinary people will lose into the hands of banks and bank stockholders. It’s a fine example of legislation-driven widening of income disparity. Why must we commoners give up another portion of income to the pockets that already have so much more? We IRA holders worked for our money and invested it, and will use the interest to supplement Social Security income.

Aren’t we all trying to reduce demand on the Social Security system? When interest rates increase, may we not take advantage of it as well as the well-to-do? Does Congress so love the wealthy that they won’t even allow the rest of us the crumbs?

Write to your congressperson.

Daniel Peterson

Coeur d’Alene