Selasa, 31 Desember 2019

Carlos Ghosn: Ex-Nissan boss flees Japan for Lebanon - The - The Washington Post

Former Nissan boss Carlos Ghosn confirmed on Dec. 31 he fled for Lebanon despite being under strict bail conditions not to leave Japan.

TOKYO — Carlos Ghosn, the charismatic and controversial former boss of the Nissan-Renault car alliance, said Tuesday that he had left Japan, where he was awaiting trial on charges of financial misconduct, “to escape injustice” and arrived in Lebanon in a daring flight that appeared to leave Japanese authorities and his attorneys mystified.

It was not clear how Ghosn, who is of Lebanese descent and holds Lebanese, French and Brazilian citizenship, had departed Japan. The 65-year-old was released on a record bail amount of about $14 million in Tokyo in April but was placed under close surveillance and ordered to surrender his passports.

“I am now in Lebanon and will no longer be held hostage by a rigged Japanese justice system where guilt is presumed, discrimination is rampant, and basic human rights are denied, in flagrant disregard of Japan’s legal obligations under international law and treaties it is bound to uphold,” Ghosn said in a statement.

“I have not fled justice — I have escaped injustice and political persecution. I can now finally communicate freely with the media, and look forward to starting next week.”

One of Ghosn’s Japanese attorneys said they were still holding his Lebanese, French and Brazilian passports, as required by the terms of his bail.

“It was like a bolt from the blue. We are surprised and puzzled,” Junichiro Hironaka told reporters, in remarks carried by state broadcaster NHK. He added that he still believes his client to be innocent but called Ghosn’s escape “inexcusable.”

A Lebanese security official told NHK that a person resembling Ghosn had entered Lebanon under a different name, arriving by private jet. But Selim Jreissati, Lebanon’s state minister for presidential affairs, told the An-Nahar newspaper that Ghosn had entered Lebanon legally through the airport with his French passport and his Lebanese ID.

Hironaka said that he last saw Ghosn on Christmas Day but that the former auto executive gave no hint of any plans to flee. Japan’s immigration authorities told local media that they had no record of Ghosn leaving the country.

[Former Nissan, Renault boss Carlos Ghosn rearrested on fresh charges in Japan]

Ghosn’s treatment since his arrest in November 2018 has thrown an unflattering spotlight on Japan’s justice system and prompted concerns in boardrooms around the world. Sympathy was high among the general public in Lebanon, and its government had complained publicly about Ghosn’s humiliating treatment behind bars.

Ghosn, one of the world’s most successful auto executives, was accused of financial misconduct and aggravated breach of trust, including by underreporting his income and enriching himself through payments to dealerships in the Middle East.

His initial 23-day detention was extended to 108 days as prosecutors rearrested him several times while he was behind bars, a common tactic used in Japan to extract confessions and widely criticized as amounting to “hostage justice.”

He was released in March on $9 million bail, then rearrested in April just after announcing plans to hold a news conference, before finally being granted a second bail for an additional $5 million under strict conditions, including that he not speak to his wife.

With conviction rates around 99 percent in Japan, and Ghosn facing a maximum sentence of 15 years in prison, he clearly felt the odds were against him.

“Maybe he thought he won’t get a fair trial,” Hironaka said. “I can’t blame him for thinking that way.”

Writing in The Washington Post in April, Carole Ghosn said her husband had been kept in solitary confinement, with the lights on around the clock, and subjected to interrogation at all hours of the night and day without access to his attorneys.

The case prompted questions about whether a Japanese executive would have faced the same treatment, and why Ghosn and U.S. citizen Greg Kelly were the only Nissan board members arrested, when the company’s Japanese executives should also have known about Ghosn’s compensation arrangements. Kelly remains in Japan awaiting trial.

Mark Lennihan

AP

Carlos Ghosn at the New York International Auto Show in April 2015.

Japan’s security regulators recently fined Nissan $22 million over inaccurate financial disclosures, and Ghosn’s successor, Hiroto Saikawa, resigned in September over allegations of financial misconduct but has not been charged with any crime. Meanwhile, sales and profits at the auto giant have crumbled.

Ghosn and his attorneys say the allegations were trumped up as part of a conspiracy among Nissan, government officials and prosecutors to oust Ghosn and block his plans to force through a closer merger between the Japanese automaker and its alliance partner, Renault. Ghosn spoke out about “backstabbing” by his former colleagues.

Concerns also have been raised about Ghosn’s management.

In dismissing Ghosn in 2018, Nissan said its investigations revealed misconduct that included understating his salary and transferring $5 million of company funds to an account in which he had an interest.

Renault, initially supportive of its former boss, announced in April after an internal investigation that it had found evidence of “questionable and concealed practices and violations of the group’s ethical principles.” At the time, Renault said it would halt Ghosn’s pension and reserved the right to bring action against him in the courts.

[Japanese court grants bail to former Nissan boss Carlos Ghosn after nearly four months in jail]

Ghosn earned a reputation as one of the auto industry’s top executives after turning around the fortunes of Renault and Nissan and bringing the two companies together in a three-way alliance with Mitsubishi.

But his efforts to forge closer links between Renault and Nissan ran into opposition from within the Japanese company, and many experts say that may have been a factor in his downfall.

His reputation for streamlining Renault’s operations won him the nickname “Le Cost Killer,” while his success in turning Nissan around from near bankruptcy earned him the moniker “Mr. Fix It.” His efforts made him popular in Japan, with blanket media coverage and even a manga comic produced about his life. However, his lavish lifestyle and relatively high pay were sources of controversy.

Inevitably, there was intense speculation about how Ghosn could have left the country without the authorities’ knowledge.

Earlier this month, Japanese Minister of State for Foreign Affairs Keisuke Suzuki visited Beirut, where he met with the Lebanese president and foreign minister. Jreissati was reported as saying that he had presented Suzuki with a file asking for Ghosn to be handed over to face trial in Lebanon under international anti-corruption laws but that there had been no official word from Japan before Ghosn’s arrival.

Japan’s Foreign Ministry said it was still “looking into the matter to ascertain the status of affairs” and could not comment at the moment. A senior official told NHK that the ministry was not aware of Ghosn’s departure.

“Had we known about it prior to his departure, we would have reported that to the legal authorities,” the official was quoted as saying.

Prosecutors had opposed granting Ghosn bail and told Japanese media that they feared he might try to escape.

Lebanon does not have an extradition treaty with Japan, and it is unlikely that any attempt to extradite him would be successful.

Akiko Kashiwagi contributed to this report.

Read more

Former Nissan, Renault boss Carlos Ghosn rearrested on fresh charges in Japan

Japanese court grants bail to former Nissan boss Carlos Ghosn after nearly four months in jail

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2019-12-31 15:51:00Z
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Dow Jones Futures: Stock Market Rally Pauses But Apple Stock Keeps Climbing; TJX, Copart, Dynatrace Near Buys - Investor's Business Daily

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  1. Dow Jones Futures: Stock Market Rally Pauses But Apple Stock Keeps Climbing; TJX, Copart, Dynatrace Near Buys  Investor's Business Daily
  2. Here are the best and worst Dow and S&P 500 stocks of 2019  MarketWatch
  3. Stocks close lower as some of year's biggest winners drop  msnNOW
  4. Here are Wall Street's favorite stocks for 2020  CNBC
  5. Stock markets ending the year on record highs is great for everyone, not just investors  Washington Examiner
  6. View full coverage on Google News

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2019-12-31 13:10:00Z
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Dow Jones Futures: Stock Market Rally Pauses But Apple Stock Keeps Climbing; TJX, Copart, Dynatrace Near Buys - Investor's Business Daily

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  1. Dow Jones Futures: Stock Market Rally Pauses But Apple Stock Keeps Climbing; TJX, Copart, Dynatrace Near Buys  Investor's Business Daily
  2. Historic year closes, home price data and consumer confidence: 3 things to watch for on Tuesday  CNBC
  3. Here are the best and worst Dow and S&P 500 stocks of 2019  MarketWatch
  4. Wall Street slips from record levels as traders book profits  Yahoo News
  5. Dow drops nearly 200 points on second-to-last day of trading, trimming big gain for the year  CNBC
  6. View full coverage on Google News

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2019-12-31 13:02:00Z
52780529590160

Dow Jones Futures: Stock Market Rally Pauses But Apple Stock Keeps Climbing; TJX, Copart, Dynatrace Near Buys - Investor's Business Daily

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  1. Dow Jones Futures: Stock Market Rally Pauses But Apple Stock Keeps Climbing; TJX, Copart, Dynatrace Near Buys  Investor's Business Daily
  2. Here are the best and worst Dow and S&P 500 stocks of 2019  MarketWatch
  3. Historic year closes, home price data and consumer confidence: 3 things to watch for on Tuesday  CNBC
  4. Trump enters 2020 on a bull market high | TheHill  The Hill
  5. These are the 11 best performing S&P 500 stocks of 2019  AOL
  6. View full coverage on Google News

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2019-12-31 11:59:00Z
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Jeff Bezos lost $10B in 2019 amid divorce, but still richest man - Business Insider

  • Amazon’s founder and CEO, Jeff Bezos, suffered a decline of more than $10 billion in his net worth in 2019, according to Bloomberg.
  • The loss is mainly down to his divorce from MacKenzie Bezos, which led to a settlement in which she received Amazon stock worth more than $35 billion.
  • MacKenzie Bezos became one of the world’s wealthiest women after the split.
  • Overall 2019 has been a good year for the incredibly wealthy. Only two of the 50 wealthiest billionaires suffered a net loss.
  • Visit Business Insider’s home page for more stories.

Amazon’s founder and CEO, Jeff Bezos, lost more money than almost any other billionaire in 2019, but he remained the richest person in the world.

At $115 billion, Bezos‘ net worth is down $10.1 billion this year, according to Bloomberg’s Billionaire’s Index as of Tuesday.

The decline was the second-largest on the list, just smaller than that suffered by the media mogul Rupert Murdoch, whose net worth more than halved. It fell by $10.2 billion, to $7.8 billion from $18 billion.

Bezos‘ loss can be accounted for by the cost of his separation from MacKenzie Bezos, his wife of 26 years. The two announced their separation in January.

Jeff Bezos 2019 IAF Award

Foto: Bezos after receiving an award from the International Astronautical Federation at an event in Washington, DC, on October 22.sourceMANDEL NGAN/AFP via Getty Images

In a divorce settlement finalized in July, the couple divided their Amazon shares, with 75% going to Jeff Bezos and 25% to MacKenzie Bezos.

The settlement took an enormous chunk out of Bezos‘ reported net worth, which peaked in excess of $165 billion in late 2018, according to Bloomberg.

It also created a new, independent billionaire in MacKenzie Bezos, who ended the year in 25th place on the Bloomberg index with $37.1 billion to her name. She is the fifth-richest woman on the list.

Such is the scale of Amazon’s and Bezos‘ wealth that the notionally private development of their marriage ending was ultimately one of the most significant financial events of 2019.

The $37.1 billion wealth transfer between the Bezoses is a little larger than the entire $35.1 billion gross domestic product of Latvia, an Eastern European nation with about 1.9 million inhabitants.

According to Bloomberg’s index, 2019 was overall a good year for the extremely wealthy.

Only two people in the top 50 ⁠- Jeff Bezos and the Chinese real-estate billionaire Hui Ka Yan ⁠- experienced a decline in their net worth.

Tech moguls featured prominently among the winners, with sharp increases for Facebook CEO Mark Zuckerberg (up $26 billion), the Microsoft cofounder Bill Gates (up $22.7 billion), and the Google founders Larry Page and Sergey Brin (up $13.3 billion and $12.8 billion).

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2019-12-31 10:20:17Z
CAIiEKPSjZ2hJjP8Y6eNO0x-U0EqLggEKiUIACIbd3d3LmJ1c2luZXNzaW5zaWRlci5jb20vc2FpKgQICjAMMNfv5wE

The Mustang Mach-E's extended range battery is a popular option - Engadget

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While Ford hasn't revealed exactly how many people are lining up to pre-order the Mustang Mach-E, the company has released some stats showing which versions people prefer so far. Apparently battery life is important to buyers of the sporty electric SUV, with 80 percent opting for versions with the long range battery that lets it go up to an estimated 300 miles between charges. The dual-motor all-wheel-drive version is also popular, at 55 percent of orders, and 30 percent of those interested have opted for the GT trim level.

The First Edition vehicles are already sold out, but, as Autoblog notes, if you find the Mustang-branded crossover appealing, you can order one with $500 down. You'll have to wait until 2021 for a GT, but other trim levels may ship before the end of this year.

Gallery: Ford Mustang Mach-E unveil | 11 Photos

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2019-12-31 09:22:10Z
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Ex-Nissan CEO Carlos Ghosn flees trial in Japan for Lebanon | DW News - DW News

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2019-12-31 09:17:33Z
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The Mustang Mach-E's extended range battery is a popular option - Engadget

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While Ford hasn't revealed exactly how many people are lining up to pre-order the Mustang Mach-E, the company has released some stats showing which versions people prefer so far. Apparently battery life is important to buyers of the sporty electric SUV, with 80 percent opting for versions with the long range battery that lets it go up to an estimated 300 miles between charges. The dual-motor all-wheel-drive version is also popular, at 55 percent of orders, and 30 percent of those interested have opted for the GT trim level.

The First Edition vehicles are already sold out, but, as Autoblog notes, if you find the Mustang-branded crossover appealing, you can order one with $500 down. You'll have to wait until 2021 for a GT, but other trim levels may ship before the end of this year.

Gallery: Ford Mustang Mach-E unveil | 11 Photos

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
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2019-12-31 09:07:21Z
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Senin, 30 Desember 2019

Secure Act includes one critical tax change ‘that will send estate planners reeling’ - MarketWatch

On Dec. 20, President Trump signed into law the awkwardly named Setting Every Community Up for Retirement Enhancement Act (Secure Act). The new law is mainly intended to expand opportunities for individuals to increase their retirement savings. But it also includes one big anti-taxpayer change that will send some financially comfortable folks and their estate planners reeling. The Secure Act includes some other important tax changes that have nothing to do with retirement.

In several installments, MarketWatch will cover the changes that are most likely to affect individuals and small businesses.

No more age restriction on traditional IRA contributions

Before the Secure Act, you could not make contributions to a traditional IRA for the year during which you reached age 70 1/2 or any later year. (There’s no age restriction on Roth IRA contributions, and the Secure Act does not change that.)

New law: For tax years beginning after 2019, the Secure Act repeals the age restriction on contributions to traditional IRAs. So, for tax years beginning in 2020 and beyond, you can make contributions after reaching age 70½. That’s the good news.

Key point: The deadline for making a contribution for your 2019 tax year is April 15, 2020, but you cannot make a contribution for 2019 if you were age 70 1/2 or older as of Dec. 31, 2019. Thanks to the new law, you can make contributions for tax year 2020 and beyond.

Side effect for IRA qualified charitable distributions

After reaching age 70 1/2, you can make qualified charitable contributions of up to $100,000 per year directly from your IRA(s). These contributions are called qualified charitable distributions, or QCDs. Effective for QCDs made in a tax year beginning after 2019, the $100,000 QCD limit for that year is reduced (but not below zero) by the aggregate amount of deductions allowed for prior tax years due to the aforementioned Secure Act change. In other words, deductible IRA contributions made for the year you reach age 70 1/2 and later years can reduce your annual QCD allowance.

New age-72 start date for required minimum distributions from IRAs and retirement plans

Before the Secure Act, the initial required minimum distributions was for the year you turned age 70 1/2. You could postpone taking that initial payout until as late as April 1 of the year after you reached the magic age.

You generally must begin taking annual required minimum distributions (RMDs) from tax-favored retirement accounts (traditional IRAs, SEP accounts, 401(k) accounts, and the like) and pay the resulting income tax hit. However, you need not take RMDs from any Roth IRA(s) set up in your name.

Before the Secure Act, the initial RMD was for the year you turned age 70 1/2. You could postpone taking that initial payout until as late as April 1 of the year after you reached the magic age. If you chose that option, however, you must take two RMDs in that year: one by the April 1 deadline (the RMD for the previous year) plus another by Dec. 31 (the RMD for the current year). For each subsequent year, you must take another RMD by Dec. 31. Under an exception, if you’re still working as an employee after reaching the magic age and you don’t own over 5% of the outfit that employs you, you can postpone taking RMDs from your employer’s plan(s) until after you’ve retired.

New law: The Secure Act increases the age after which you must begin taking RMDs from 70 1/2 to 72. But this favorable development only applies to folks who reach 70 1/2 after 2019. So, if you turned 70 1/2 in 2019 or earlier, you’re unaffected. But if you will turn 70 1/2 in 2020 or later, you won’t need to start taking RMDs until after attaining age 72. As under prior law, if you’re still working after reaching the magic age and you don’t own over 5% of the employer, you can postpone taking RMDs from your employer’s plan(s) until after you’ve retired.

Key point: If you turned 70 1/2 in 2019 and have not yet taken your initial RMD for that year, you must take that RMD, which is for the 2019 tax year, by no later than 4/1/20 or face a 50% penalty on the shortfall. You must then take your second RMD, which is for the 2020 tax year, by Dec. 31, 2020.

Now for the bad news

Stricter rules for post-death required minimum distributions curtail ‘Stretch IRAs’: The Secure Act requires most non-spouse IRA and retirement plan beneficiaries to drain inherited accounts within 10 years after the account owner’s death. This is a big anti-taxpayer change for financially comfortable folks who don’t need their IRA balances for their own retirement years but want to use those balances to set up a long-term tax-advantaged deal for their heirs.

Before the Secure Act, the required minimum distribution (RMD) rules allowed you as a non-spouse beneficiary to gradually drain the substantial IRA that you inherited from, say, your grandfather over your IRS-defined life expectancy.

For example, say you inherited Grandpa Dave’s $750,000 Roth IRA when you were 40 years old. The current IRS life expectancy table says you have 43.6 years to live. You must start taking annual RMDs from the inherited account by dividing the account balance as of the end of the previous year by your remaining life expectancy as of the end of the current year.

So, your first RMD would equal the account balance as of the previous year-end divided by 43.6, which would amount to only 2.3% of the balance. Your second RMD would equal the account balance as of the end of the following year divided by 42.6, which translates to only 2.35% of the balance. And so, on until you drain the inherited Roth account.

As you can see, the pre-Secure Act RMD regime allowed you to keep the inherited account open for many years and reap the tax advantages for those many years. With an IRA, this is called the “Stretch IRA” strategy. The Stretch IRA strategy is particularly advantageous for inherited Roth IRAs, because the income those accounts produce can grow and be withdrawn federal-income-tax-free. So, under the pre-Secure Act rules, a Stretch Roth IRA could give you some protection from future federal income tax rate increases for many years. That’s the upside.

This development will have some well-off folks and their estate planning advisers scrambling for months (at least) to react.

Unfortunately, the Secure Act’s 10-year rule puts a damper on the Stretch IRA strategy. It can still work, but only in the limited circumstances when the 10-year rule does not apply (explained below). This development will have some well-off folks and their estate planning advisers scrambling for months (at least) to react. That’s especially true if you’ve set up a “conduit” or “pass-through” trust as the beneficiary of what you intended to be a Stretch IRA for your heirs.

Also see: Inheriting a parent’s IRA or 401(k). Here’s how the Secure Act could create a disaster

Key point: According to the Congressional Research Service, the lid put on the Stretch IRA strategy by the new law has the potential to generate about $15.7 billion in tax revenue over the next decade. 

Effective date: The Secure Act’s anti-taxpayer RMD change is generally effective for RMDs taken from accounts whose owners die after 2019. The RMD rules for accounts inherited from owners who died before 2020 are unchanged.

Who is affected?

The Secure Act’s anti-taxpayer RMD change will not affect account owners who drain their accounts during their retirement years. And account beneficiaries who want to quickly drain inherited accounts will be unaffected. The change will only affect certain non-spouse beneficiaries who want to keep inherited accounts open for as long as possible to reap the tax advantages. In other words, “rich” folks with lots of financial self-discipline.

The Secure Act’s anti-taxpayer RMD change also will not affect accounts inherited by a so-called eligible designated beneficiary. An eligible designated beneficiary is: (1) the surviving spouse of the deceased account owner, (2) a minor child of the deceased account owner, (3) a beneficiary who is no more than 10 years younger than the deceased account owner, or (4) a chronically-ill individual (as defined).

If your grandfather dies in 2020 or later, you can only keep the big Roth IRA that you inherit from him open for 10 years after his departure.

Under the exception for eligible designated beneficiaries, RMDs from the inherited account can generally be taken over the life or life expectancy of the eligible designated beneficiary, beginning with the year following the year of the account owner’s death. Same as before the Secure Act.

So, the Stretch IRA strategy can still work for an eligible designated beneficiary, such as an account owner’s much-younger spouse or recently born tot. Other non-spouse beneficiaries (such as an adult child, grandchild, niece or nephew) will get slammed by the new 10-year account liquidation requirement. So, if your grandfather dies in 2020 or later, you can only keep the big Roth IRA that you inherit from him open for 10 years after his departure. Bummer!

10-year rule specifics: When it applies, the new 10-year rule generally applies regardless of whether the account owner dies before or after his or her RMD required beginning date (RBD). Thanks to another Secure Act change explained earlier, the RMD rules do not kick in until age 72 for account owners who attain age 70 1/2 after 2019. So, the RBD for those folks will be April 1 of the year following the year they attain age 72.

Following the death of an eligible designated beneficiary, the account balance must be distributed within 10 years.

When an account owner’s child reaches the age of majority under applicable state law, the account balance must be distributed within 10 years after that date.

The bottom line: As you can see, the Secure Act includes both good and bad news for folks who don’t enjoy paying taxes. The new law includes more important tax changes that I’ve not covered here.

3 examples of new RMD rules for non-spousal retirement account beneficiaries

Example 1: Harold dies in 2020 and leaves his IRA to designated beneficiary Hermione, his sister, who was born eight years after Harold. Hermione is an eligible designated beneficiary. Therefore, the balance in the inherited IRA can be paid out over her life expectancy. If Hermione dies before the account is exhausted, the remaining balance must be paid out within 10 years after her death.

Example 2: Ingrid dies in 2020 and leaves her IRA to designated beneficiary Ignacio, her brother, who was born 12 years after Ingrid. Ignacio is not an eligible designated beneficiary because he is more than 10 years younger than Ingrid. The balance in the inherited IRA must be paid out within 10 years after Ingrid’s death.

Example 3: Jerry dies in 2020 at age 85. He lives his $2 million Roth IRA to his 24-year-old spouse Jasmine. Since Jasmine is an eligible designated beneficiary, the new 10-year rule does not apply to her. As a surviving spouse, she can retitle the inherited Roth account in her own name. Then she will not have to take any RMDs for as long as she lives. So, this is a situation where the Stretch IRA strategy still works well (although not quite as well as before the Secure Act for reasons that are too complicated to explain here).

Example 4: Kendrick dies on Dec. 15, 2019. He left his IRA to designated beneficiary Kelli, his beloved niece, who is 30 years younger than Kendrick. Because Kendrick died before 2020, the balance in the inherited IRA can be paid out over Kelli’s life expectancy under the pre-Secure Act RMD rules. If Kelli dies on or after 1/1/20, the balance in the IRA must be paid out to her designated beneficiary or beneficiaries or the heir(s) who inherit the account within 10 years after Kelli’s death.

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2019-12-30 14:07:00Z
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Tesla delivers first China-made Model 3s to its own workers - CNN

Fifteen employees of the electric carmaker become the first customers to receive Model 3s produced in China during a ceremony at the factory on Monday, according to Tesla. Wang Hao, general manager for Tesla China, said during the event that more cars will be delivered to workers over the next couple of days before other customers begin receiving them next month.
How Tesla's risky bet on making cars in China could pay off
The Shanghai plant was built in just 10 months and began trial production in October. The first batch of cars to roll off the assembly line began making their way to Tesla's dozens of experience centers in China last month, where potential customers were given the opportunity to test drive them. Tesla has been taking orders for Model 3s made in China since October 25.
"This is a happy gathering," the company wrote on Weibo, China's Twitter-like platform, where it also live-streamed the Shanghai event. "The delivery of China-made Model 3s to our beloved workers is to reward everyone's hard work this year."
One Tesla (TSLA) employee who received a car even proposed to his girlfriend at the ceremony. He lifted the car's hood, revealing flowers underneath, and said he wanted to give the vehicle to his girlfriend as a "gift" before asking her to marry him. (She appeared to say yes.)
An employee, left, proposes to his girlfriend with his newly delivered Tesla Model 3 in Shanghai on Monday.
Elon Musk's carmaker built the Shanghai factory to grow its business, pump out more cars and better target Chinese customers. The facility could also push production costs lower.
Right now, a Shanghai-built Model 3 has a starting price of 355,800 yuan ($51,000), about 2% cheaper than an imported model. Buyers of the locally made cars can also take advantage of government subsidies of nearly 25,000 yuan ($3,578), and are exempt from a car purchase tax, according to the company.
Tesla isn't new to the Chinese market — it's been delivering cars to people there since 2014. But Musk has touted the new factory as a "template for future growth." The company has said it wants to eventually make 500,000 cars a year in Shanghai.
It's also the first Tesla production plant built outside the United States. Musk recently announced that the company has plans to build another one in Berlin, taking the great electric car race to the manufacturing heart of Europe.
China, meanwhile, is the world's largest car market, though sales are slowing as the country grapples with broader economic troubles.

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2019-12-30 11:16:00Z
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Tesla delivers first China-made Model 3s to its own workers - CNN

Fifteen employees of the electric carmaker become the first customers to receive Model 3s produced in China during a ceremony at the factory on Monday, according to Tesla. Wang Hao, general manager for Tesla China, said during the event that more cars will be delivered to workers over the next couple of days before other customers begin receiving them next month.
How Tesla's risky bet on making cars in China could pay off
The Shanghai plant was built in just 10 months and began trial production in October. The first batch of cars to roll off the assembly line began making their way to Tesla's dozens of experience centers in China last month, where potential customers were given the opportunity to test drive them. Tesla has been taking orders for Model 3s made in China since October 25.
"This is a happy gathering," the company wrote on Weibo, China's Twitter-like platform, where it also live-streamed the Shanghai event. "The delivery of China-made Model 3s to our beloved workers is to reward everyone's hard work this year."
One Tesla (TSLA) employee who received a car even proposed to his girlfriend at the ceremony. He lifted the car's hood, revealing flowers underneath, and said he wanted to give the vehicle to his girlfriend as a "gift" before asking her to marry him. (She appeared to say yes.)
An employee, left, proposes to his girlfriend with his newly delivered Tesla Model 3 in Shanghai on Monday.
Elon Musk's carmaker built the Shanghai factory to grow its business, pump out more cars and better target Chinese customers. The facility could also push production costs lower.
Right now, a Shanghai-built Model 3 has a starting price of 355,800 yuan ($51,000), about 2% cheaper than an imported model. Buyers of the locally made cars can also take advantage of government subsidies of nearly 25,000 yuan ($3,578), and are exempt from a car purchase tax, according to the company.
Tesla isn't new to the Chinese market — it's been delivering cars to people there since 2014. But Musk has touted the new factory as a "template for future growth." The company has said it wants to eventually make 500,000 cars a year in Shanghai.
It's also the first Tesla production plant built outside the United States. Musk recently announced that the company has plans to build another one in Berlin, taking the great electric car race to the manufacturing heart of Europe.
China, meanwhile, is the world's largest car market, though sales are slowing as the country grapples with broader economic troubles.

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2019-12-30 10:51:00Z
52780519173343

Secure Act includes one critical tax change ‘that will send estate planners reeling’ - MarketWatch

On Dec. 20, President Trump signed into law the awkwardly named Setting Every Community Up for Retirement Enhancement Act (Secure Act). The new law is mainly intended to expand opportunities for individuals to increase their retirement savings. But it also includes one big anti-taxpayer change that will send some financially comfortable folks and their estate planners reeling. The Secure Act includes some other important tax changes that have nothing to do with retirement.

In several installments, MarketWatch will cover the changes that are most likely to affect individuals and small businesses.

No more age restriction on traditional IRA contributions

Before the Secure Act, you could not make contributions to a traditional IRA for the year during which you reached age 70 1/2 or any later year. (There’s no age restriction on Roth IRA contributions, and the Secure Act does not change that.)

New law: For tax years beginning after 2019, the Secure Act repeals the age restriction on contributions to traditional IRAs. So, for tax years beginning in 2020 and beyond, you can make contributions after reaching age 70½. That’s the good news.

Key point: The deadline for making a contribution for your 2019 tax year is April 15, 2020, but you cannot make a contribution for 2019 if you were age 70 1/2 or older as of Dec. 31, 2019. Thanks to the new law, you can make contributions for tax year 2020 and beyond.

Side effect for IRA qualified charitable distributions

After reaching age 70 1/2, you can make qualified charitable contributions of up to $100,000 per year directly from your IRA(s). These contributions are called qualified charitable distributions, or QCDs. Effective for QCDs made in a tax year beginning after 2019, the $100,000 QCD limit for that year is reduced (but not below zero) by the aggregate amount of deductions allowed for prior tax years due to the aforementioned Secure Act change. In other words, deductible IRA contributions made for the year you reach age 70 1/2 and later years can reduce your annual QCD allowance.

New age-72 start date for required minimum distributions from IRAs and retirement plans

Before the Secure Act, the initial required minimum distributions was for the year you turned age 70 1/2. You could postpone taking that initial payout until as late as April 1 of the year after you reached the magic age.

You generally must begin taking annual required minimum distributions (RMDs) from tax-favored retirement accounts (traditional IRAs, SEP accounts, 401(k) accounts, and the like) and pay the resulting income tax hit. However, you need not take RMDs from any Roth IRA(s) set up in your name.

Before the Secure Act, the initial RMD was for the year you turned age 70 1/2. You could postpone taking that initial payout until as late as April 1 of the year after you reached the magic age. If you chose that option, however, you must take two RMDs in that year: one by the April 1 deadline (the RMD for the previous year) plus another by Dec. 31 (the RMD for the current year). For each subsequent year, you must take another RMD by Dec. 31. Under an exception, if you’re still working as an employee after reaching the magic age and you don’t own over 5% of the outfit that employs you, you can postpone taking RMDs from your employer’s plan(s) until after you’ve retired.

New law: The Secure Act increases the age after which you must begin taking RMDs from 70 1/2 to 72. But this favorable development only applies to folks who reach 70 1/2 after 2019. So, if you turned 70 1/2 in 2019 or earlier, you’re unaffected. But if you will turn 70 1/2 in 2020 or later, you won’t need to start taking RMDs until after attaining age 72. As under prior law, if you’re still working after reaching the magic age and you don’t own over 5% of the employer, you can postpone taking RMDs from your employer’s plan(s) until after you’ve retired.

Key point: If you turned 70 1/2 in 2019 and have not yet taken your initial RMD for that year, you must take that RMD, which is for the 2019 tax year, by no later than 4/1/20 or face a 50% penalty on the shortfall. You must then take your second RMD, which is for the 2020 tax year, by Dec. 31, 2020.

Now for the bad news

Stricter rules for post-death required minimum distributions curtail ‘Stretch IRAs’: The Secure Act requires most non-spouse IRA and retirement plan beneficiaries to drain inherited accounts within 10 years after the account owner’s death. This is a big anti-taxpayer change for financially comfortable folks who don’t need their IRA balances for their own retirement years but want to use those balances to set up a long-term tax-advantaged deal for their heirs.

Before the Secure Act, the required minimum distribution (RMD) rules allowed you as a non-spouse beneficiary to gradually drain the substantial IRA that you inherited from, say, your grandfather over your IRS-defined life expectancy.

For example, say you inherited Grandpa Dave’s $750,000 Roth IRA when you were 40 years old. The current IRS life expectancy table says you have 43.6 years to live. You must start taking annual RMDs from the inherited account by dividing the account balance as of the end of the previous year by your remaining life expectancy as of the end of the current year.

So, your first RMD would equal the account balance as of the previous year-end divided by 43.6, which would amount to only 2.3% of the balance. Your second RMD would equal the account balance as of the end of the following year divided by 42.6, which translates to only 2.35% of the balance. And so, on until you drain the inherited Roth account.

As you can see, the pre-Secure Act RMD regime allowed you to keep the inherited account open for many years and reap the tax advantages for those many years. With an IRA, this is called the “Stretch IRA” strategy. The Stretch IRA strategy is particularly advantageous for inherited Roth IRAs, because the income those accounts produce can grow and be withdrawn federal-income-tax-free. So, under the pre-Secure Act rules, a Stretch Roth IRA could give you some protection from future federal income tax rate increases for many years. That’s the upside.

This development will have some well-off folks and their estate planning advisers scrambling for months (at least) to react.

Unfortunately, the Secure Act’s 10-year rule puts a damper on the Stretch IRA strategy. It can still work, but only in the limited circumstances when the 10-year rule does not apply (explained below). This development will have some well-off folks and their estate planning advisers scrambling for months (at least) to react. That’s especially true if you’ve set up a “conduit” or “pass-through” trust as the beneficiary of what you intended to be a Stretch IRA for your heirs.

Also see: Inheriting a parent’s IRA or 401(k). Here’s how the Secure Act could create a disaster

Key point: According to the Congressional Research Service, the lid put on the Stretch IRA strategy by the new law has the potential to generate about $15.7 billion in tax revenue over the next decade. 

Effective date: The Secure Act’s anti-taxpayer RMD change is generally effective for RMDs taken from accounts whose owners die after 2019. The RMD rules for accounts inherited from owners who died before 2020 are unchanged.

Who is affected?

The Secure Act’s anti-taxpayer RMD change will not affect account owners who drain their accounts during their retirement years. And account beneficiaries who want to quickly drain inherited accounts will be unaffected. The change will only affect certain non-spouse beneficiaries who want to keep inherited accounts open for as long as possible to reap the tax advantages. In other words, “rich” folks with lots of financial self-discipline.

The Secure Act’s anti-taxpayer RMD change also will not affect accounts inherited by a so-called eligible designated beneficiary. An eligible designated beneficiary is: (1) the surviving spouse of the deceased account owner, (2) a minor child of the deceased account owner, (3) a beneficiary who is no more than 10 years younger than the deceased account owner, or (4) a chronically-ill individual (as defined).

If your grandfather dies in 2020 or later, you can only keep the big Roth IRA that you inherit from him open for 10 years after his departure.

Under the exception for eligible designated beneficiaries, RMDs from the inherited account can generally be taken over the life or life expectancy of the eligible designated beneficiary, beginning with the year following the year of the account owner’s death. Same as before the Secure Act.

So, the Stretch IRA strategy can still work for an eligible designated beneficiary, such as an account owner’s much-younger spouse or recently born tot. Other non-spouse beneficiaries (such as an adult child, grandchild, niece or nephew) will get slammed by the new 10-year account liquidation requirement. So, if your grandfather dies in 2020 or later, you can only keep the big Roth IRA that you inherit from him open for 10 years after his departure. Bummer!

10-year rule specifics: When it applies, the new 10-year rule generally applies regardless of whether the account owner dies before or after his or her RMD required beginning date (RBD). Thanks to another Secure Act change explained earlier, the RMD rules do not kick in until age 72 for account owners who attain age 70 1/2 after 2019. So, the RBD for those folks will be April 1 of the year following the year they attain age 72.

Following the death of an eligible designated beneficiary, the account balance must be distributed within 10 years.

When an account owner’s child reaches the age of majority under applicable state law, the account balance must be distributed within 10 years after that date.

The bottom line: As you can see, the Secure Act includes both good and bad news for folks who don’t enjoy paying taxes. The new law includes more important tax changes that I’ve not covered here.

3 examples of new RMD rules for non-spousal retirement account beneficiaries

Example 1: Harold dies in 2020 and leaves his IRA to designated beneficiary Hermione, his sister, who was born eight years after Harold. Hermione is an eligible designated beneficiary. Therefore, the balance in the inherited IRA can be paid out over her life expectancy. If Hermione dies before the account is exhausted, the remaining balance must be paid out within 10 years after her death.

Example 2: Ingrid dies in 2020 and leaves her IRA to designated beneficiary Ignacio, her brother, who was born 12 years after Ingrid. Ignacio is not an eligible designated beneficiary because he is more than 10 years younger than Ingrid. The balance in the inherited IRA must be paid out within 10 years after Ingrid’s death.

Example 3: Jerry dies in 2020 at age 85. He lives his $2 million Roth IRA to his 24-year-old spouse Jasmine. Since Jasmine is an eligible designated beneficiary, the new 10-year rule does not apply to her. As a surviving spouse, she can retitle the inherited Roth account in her own name. Then she will not have to take any RMDs for as long as she lives. So, this is a situation where the Stretch IRA strategy still works well (although not quite as well as before the Secure Act for reasons that are too complicated to explain here).

Example 4: Kendrick dies on Dec. 15, 2019. He left his IRA to designated beneficiary Kelli, his beloved niece, who is 30 years younger than Kendrick. Because Kendrick died before 2020, the balance in the inherited IRA can be paid out over Kelli’s life expectancy under the pre-Secure Act RMD rules. If Kelli dies on or after 1/1/20, the balance in the IRA must be paid out to her designated beneficiary or beneficiaries or the heir(s) who inherit the account within 10 years after Kelli’s death.

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2019-12-30 10:51:00Z
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