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THE SAUGUS ADVOCATE – FriDAy, JAnUAry 19, 2024 Page 17 BEACON HILL ROLL | FROM PAGE 16 vides us with a smart accounting measure that we can utilize to effectively stretch and maximize our taxpayer dollars to place the commonwealth in the very best position to compete for these lucrative federal funds, while also ensuring we continue to protect our rainy day reserves and adhere to sound fiscal discipline,” said Sen. Mike Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “Government is all about partnership.” (A “Yes” vote is for the bill.) .. Sen. Brendaфn Crighton ... Yes REQUIRE THE GOVERNOR TO GIVE 30 DAYS NOTICE (S 2548) Senate 38-0 and 38-0, approved two amendments to the bill that leverages the interest from the state’s Rainy Day Fund to better compete for federal dollars. Both amendments make the governor’s spending and transfers of funds subject to a 30-day advance reporting requirement to allow the Legislature and the public to know what is being considered before any actions are taken. “This bill gives the governor and her administration the unilateral power to control what could potentially be millions of public dollars generated from the interest earned by the state’s stabilization fund,” said Sen. Bruce Tarr (R-Gloucester), the sponsor of both amendments. “Power must be balanced by the transparency and accountability these amendments provide. They will ensure that the Legislature and the public know what is happening with these precious public resources before it happens.” (Both roll calls are listed.On both roll calls, a “Yes” vote is for the amendment.) .. Sen. Brendan Crighton ...... Yes/Yes ALSO UP ON BEACON HILL DON’T MISS THIS “HOW CAN WE ACHIEVE HEALTH CARE EQUITY IN MASSACHUSETTS” EVENT - Join MASSterList and the State House News Service for an in-person event at the Massachusetts Continuing Legal Education (MCLE) in Downtown Crossing, Boston on January 23 from 7:30 a.m. to 10 a.m. Massachusetts health care is renowned for its leadership and innovation and yet it falls alarmingly short in delivering equitable access and outcomes. Health data has consistently revealed an array of morally indefensible health disparities along racial lines, including in maternal health, diabetes opioid use and access to preventive care. The in-depth discussion includes health leaders, including providers, advocates and elected officials, on the next steps that are needed for Massachusetts to achieve health equity for all, and how different sectors, leaders, and communities can get involved. Details and sign up: https://massterlist.com/health-equity PROHIBIT GIVING LIFE WITHOUT PAROLE SENTENCES TO 18, 19 AND 20 YEAR OLDS - A 4-3 ruling by the State Supreme Judicial Court (SJC) overruled the Legislature and ruled that life sentences without the possibility of parole for offenders who were 18, 19 or 20 when they committed their crimes violate the prohibition against cruel or unusual punishment and are unconstitutional. “Bravo, a strong juvenile justice victory,” posted Sen. Jamie Eldridge (D-Marlborough) on X. #cjreform advocates estimate around 200 incarcerated people could be eligible for parole from the SJC ruling, with more decisions to come.” Some legislators said the court overstepped its boundaries and violated the constitution’s separation of powers. “Passing laws that make crimes and set sentences is the province of the Legislature, and if the majority of the court wants to get into that business, then they ought to resign from the court and run for the Legislature,” said Rep. Jeff Turco (D-Winthrop). “Today’s ruling underscores the importance of our legal system acknowledging the ongoing brain development of young people in order to improve public safety, reduce recidivism and deliver justice,” said Attorney General Andrea Campbell. “The science emphatically demonstrates that young people have an extraordinary capacity to change and mature, and our justice system should provide them the invaluable opportunity to turn their lives around and fulfil their potential.” ZERO EMISSIONS BY 2040 (S 2488) – The Telecommunications, Utilities and Energy Committee held a hearing on legislation that would accelerate the decrease of carbon emissions by requiring the state to achieve net zero emissions by 2040, instead of current law which sets the goal for 2050. “I filed this legislation because the latest scientific consensus indicates the worst effects of our climate crisis have begun to unravel,” said sponsor Sen. Marc Pacheco (D-Taunton).“In terms of our collective progress toward net zero emissions, we are crawling when the science clearly demonstrates we need to be sprinting.We have now already reached the point where you don’t need to look at the science, just look out your window.” REQUIRE INTERNET SERVICE PROVIDERS TO GET CUSTOMER’S CONSENT (H 3179) – Another measure heard by the Telecommunications, Utilities and Energy Committee would prohibit telecommunications or internet service providers from collecting personally identifiable information from a customer as a result of the customer’s use of the telecommunications or internet services, without the customer’s express written approval. “[The bill] seeks to empower consumers by allowing them to take control of how their personal information is collected and disseminated,” said sponsor Rep. Brad Jones (R-North Reading). “At a time of growing privacy concerns, this bill will help to ensure that no personally identifiable information is shared by a telecommunications or internet service provider without the customer’s explicit written consent and will give the customer the power to revoke that consent at any time.” STUDENTS MUST TAKE A FINANCIAL LITERACY COURSE (H 4199) – The Education Committee held a public hearing on legislation that would require the Department of Elementary and Secondary Education to develop and assist in the implementation of curriculum on personal financial literacy to equip students with the knowledge and skills they need to become self-supporting and to enable them to make critical decisions regarding personal finances. All students in grades 9-12 would be required to take the course. The components of the curriculum would include the understanding of loans, borrowing money, interest, credit card debt and online commerce; the rights and responsibilities of renting or buying a home; saving, investing and planning for retirement; banking and financial services; balancing a checkbook; state and federal taxes; charitable giving; preventing identity theft; avoiding online scams; and learning a basic understanding of cryptocurrencies. “Far too many of our young people are thrust into life after high school with limited education on basic financial skills and habits,” said sponsor Rep. Ryan Hamilton (D-Methuen). “This is unacceptable in a world where ever-increasing college costs lead to high student debt burden and inflated rent and living costs make finding a stable job and place to live challenging for our young people especially. Ensuring that all students in Massachusetts receive financial literacy education prior to graduation is critical to both empowering the next generation and spreading greater information on healthy money practices throughout our communities.” BEACON HILL ROLL | SEE PAGE 18 10 YEAR PAYOUT FOR RMDs The IRS has clarified when non-spouse beneficiaries of IRA or 401(k) accounts must withdraw monies from the account after the owner’s death. These withdrawals are known as Required Minimum Distributions (RMD’s). If the account owner dies prior to the Required Beginning Date (RBD), the date the account owner must begin withdrawing monies from the IRA account or 401(k) account, the beneficiary must empty out the account by the end of the 10th year following the account owner’s death. If the account owner dies after the RBD, the beneficiary must withdraw monies out of the inherited IRA or 401(k) account each year and must also empty the account by the end of the 10th year after the account owner’s death. The RBD is now age 73 under the SECURE ACT 2.0. Pursuant to IRS Notice 202253, the IRS intends on following this approach. As an example of how this area of the tax law operates in practice, assume a mother and father both die in a simultaneous death. The mother is age 69 and the father is age 74. They have one child who is named the 100% secondary beneficiary of each of their IRA accounts. Since the mother had not yet reached her RBD, the child simply needs to empty out this inherited IRA account by the end of the 10TH year following her death. No annual RMDs are required. Since the father died after his RBD, the child needs to withdraw annual RMDs from this inherited IRA account over a 10- year period and must also empty it out by the end of the 10th year following his death. If an IRA or 401(k) owner dies before his RBD and the beneficiary is the owner’s estate or a nonqualifying Trust, the beneficiary must empty out the account by the end of the 5th year following the account owner’s death. No RMDs are required during this five-year period. If, however, the account owner dies after his RBD, the estate or nonqualifying Trust can withdraw the remaining account balance over the remaining life expectancy in years of the account owner reduced by 1 each year after death. This is often referred to as the “ghost” life expectancy. If a qualifying Trust is the beneficiary of the IRA or 401(k) plan, then the five-year period is extended to 10 years. Essentially, the Trust must be a conduit or see-through Trust meaning the beneficiaries are clearly identified pursuant to the provisions of the Trust. Once the account owner starts withdrawing RMDs, they cannot subsequently be turned off after his or her death. If, however, the surviving spouse is the beneficiary of the IRA or 401(k) account, he or she can establish his or her own “spousal” IRA account and refrain from taking RMDs so long as he or she has not yet obtained the age of 73 under the SECURE ACT 2.0. Once reaching the age of 73, RMDs must be withdrawn based upon the IRS life expectancy tables. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation.

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