Posted on 10/22/2008 9:42:21 AM PDT by Bodhi1
For those who don't know, here's what it is in a nutshell:
Employee 401k contribution are automatically deducted from their paycheck each pay period. This money is taken out before the employees paycheck is taxed. The contributions are invested at the employees direction into one or more funds provided in the plan. Employers often "match" employee contributions, but are not required to do so. While the investments grow in the employees 401k account, they do not pay any taxes on it.
The individual is using his or her property to ensure a prosperous future before the government has a chance to seize it. It is a great plan. I take advantage of it at work, as do many of my co-workers. You should see how attentive some of these folks are to the stock market.
The key part of the plan is found in the last sentence of the above quote. House Democrats are considering abolishing those tax breaks.
(Excerpt) Read more at allamericanblogger.com ...
the govt will support me when I am broke and have no medical insurance and can't pay my bills...
Dumber than a box of rocks bump.
401ks are a government tax trap. You’ll pay 7-12 times more taxes in retirement as the amount your deferred in your work years. Get out now and do something which grows tax free. Take responsibility for your retirement. Forget the government and your employer, do it yourself.
Are these people socialists or what? I cannot believe that this is being considered right in front of our eyes. That coupled with Obama's "redistribution of wealth" plan makes me wonder where I live. This can't be America.
Bank of Mattress, insured by FDIC.
They say the textbook definition of "insanity" is doing the same thing over and over, expecting a different result. If Nobama wins, I hopes he enjoys the 2 years he'll have of a Congressional majority (re: the Klintoon years) before it destroys itself....
From what I read it would be obligatory
BOHICA
Too many companies dont’ give you a choice — tey give you 401K donations for your retirement that the Feds take a huge bite of at retirement.
Great way to get the savings rate up for Americans.
Couldn’t we have predicted this?
I am saving as little in 401k to get a match.
Need tog et it further away from the hands of taxers.
In my case, it is Smith & Wesson, if not Remington.
Note: under one proposal, “Under Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.”
I’ll quit and go on contract; not a penny to the Commie gov’t.
“Bank of Mattress, insured by FDIC.”
Update:Bank of Mattress, insured by Browning, Glock and Colt.
This will piss me off to no end.
Why would I ever do a 401k, IRA, rothIRA or whatever?
Why reply on the government, politics, or my employer?
Guideline. Take the match (the match will pay the taxes) and put the rest in IUL. my #16.
How does Bank of Mattress hold up if it is beset by a FIRE? How 'bout keeping your stuff in little baggies in metal fence posts in the back yard? ;)
Are you talking about a certain insurance policy?
Well, there goes the 401K.
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