Here we go. Eliminate 401K accounts and IRA accounts?Vote Marxists into power and this is what you get.I need to hand over my 401K, IRA and Roth IRA. It's not fair that I made a good salary for 34 years and saved and scrimped to fund my own retirement while some obese Obama phone woman has no savings.Mikehttp://www.nationalseniorscouncil.org/index.php?option=com_c...A recent hearing sponsored by the Treasury and Labor Departments marked the beginning of the Obama Administration’s effort to nationalize the nation’s pension system and to eliminate private retirement accounts including IRA’s and 401k plans, NSC is warning.The hearing, held in the Labor Department’s main auditorium, was monitored by NSC staff and featured a line up of left-wing activists including one representative of the AFL-CIO who advocated for more government regulation over private retirement accounts and even the establishment of government-sponsored annuities that would take the place of 401k plans."This hearing was set up to explore why Americans are not saving as much for their retirement as they could," explains National Seniors Council National Director Robert Crone, "However, it is clear that this is the first step towards a government takeover. It feels just like the beginning of the debate over health care and we all know how that ended up."A representative of the liberal Pension Rights Center, Rebecca Davis, testified that the government needs to get involved because 401k plans and IRAs are unfair to poor people. She demanded the Obama administration set up a "government-sponsored program administered by the PBGC (the governments’ Pension Benefit Guarantee Corporation)." She proclaimed that even "private annuities are problematic."Such "reforms" would effectively end private retirement accounts in America, Crone warns. "These people want the government to require that ultimately all Americans buy these government annuities instead of saving or investing on their own. The Government could then take these trillions of dollars and redistribute it through this new national retirement system."Deputy Treasury Secretary J. Mark Iwry, who presided over the hearing, is a long-time critic of 401k plans because he believes they benefit the rich. He also appears to be one of the Administration’s point man on this issue.
Wii is skrewed
I'll yank my money out of retirement accounts and take the tax hit if this comes to pass. With my luck, they'll seize our assets before we can act.Mike
There is no doubt in my mind that this will happen in the not too distant future. In the meantime, we'll see some type of tax imposed on 401K and IRA balances each year, with government mandates for retired folks to purchase annuities...this will lead to a total government takeover, which will end up far worse off than current Social Security. Our government is being run by idiots and loons, but that's what the unwashed masses want, so that's what all of us will get.
Such "reforms" would effectively end private retirement accounts in America, Crone warns. "These people want the government to require that ultimately all Americans buy these government annuities instead of saving or investing on their own. The Government could then take these trillions of dollars and redistribute it through this new national retirement system." ---------------That is absolutely terrifying. I figure after tax accounts will be safe from confiscation, at least for a lot longer time than IRA's. Even Greece hasn't got around to confiscating assets AFAIK.Starting two years ago, when I got past the penalty for under age 59 1/2, I stared taking $40K a year from my 401k Rollover account even though I don't need the cash. I figure rates are going up and drawing down a little at a time to stay mostly in the 25% bracket is a good move. And it will cut down on RMDs later when rate will be really high.
But...all the democrats say they are not socialist.I wonder if PeterRabit will be on our side then when big brother tries to confiscates all the hard saved dollars of the Motley Fooler's?decath
I wonder if PeterRabit will be on our side then when big brother tries to confiscates all the hard saved dollars of the Motley Fooler's?________________________Depends, is your pocket out the side?
The problem is the 'spending' in the tax code.BY letting you put aside money tax deferred, it means the government does not get its hands on YOUR money now. The taxes are deferred. Worse, if you are rich, you probably make use of the rules which let you donate some of your IRA/401K directly to a charity, avoiding ALL taxes on it. In sure Buffet and Gates make full use of that if they can.SO, the government is 'spending' by giving you a tax deferment. (To them, 'tax spending' is letting you keep your money instead of it going to the government - ie tax breaks are 'spending' to them). It is revenue they don't get. One of the big lib dems, something gucci or similar, has been on this campaign of National Savings Accounts. BUT>..it is not tax deferred. You put it in just like you put in SS and Medicare. You put in 6% of your salary and the government 'invests' it for you in the same 'lockbox' type arrangement, where you will get 'extra benefits' above SS when you retire. You'd have no choice, of course. They'd do away with the tax deferment for 401K and IRAs which would essentially kill them. Probably the same for the contributions employers make and can deduct...they won't be able to ........ but employers will also get dinged 6% that they have to contribute to their worker's 'retirement fund'. And, the government will invest it safely into US Treasury Bonds.....so your money is safe and grows each year. They salivate over the 100 billion a year they could collect on this scheme. Of course, it will go bust in 20 years, but heck, SS is bust, Medicare is bust, and they have no intention of really fixing them, just putting on some band-aids....You bet.......workers will be socked today and get nothing int he future as the government goes bust.Of course, with this scheme, it will be indexed like SS, where the poor manage to collect a lot higher percentage of what they contribute back...... so if you are middle class or above....well, your money will be funneled to thew welfare weenies and queenies.....or your tax money will 'top off' their annual accounts....or both...so it is 'fair'. You are skroowed no matter what.They need that 100 billion a year that they are giving folks now in tax deferments. t.
Time to buy gold coins. Easier to hide and move around in luggage, secret compartments, etc. The question becomes will there be another country to run to. JLC
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