Posted on 11/09/2008 5:53:17 AM PST by Libloather
Obama's retirement plan proposals
Retirees and workers with 401(k) savings may see changes.
By DAVID PITT
Associated Press Writer
November 09. 2008 6:59AM
The election is over and the message is clear — the economy is priority one. The big question now is how some of President-elect Barack Obama's campaign proposals will affect retirees and workers with 401(k) and other retirement accounts. Looking at them a bit closer may reveal some clues.
What are some of the ideas Obama has proposed that could impact my retirement planning?
One issue Obama has endorsed may get serious consideration before he takes the oath of office in January.
Obama proposed a temporary suspension of the required minimum distribution rule, which forces tens of millions of retirees to take money out of their IRA and 401(k) accounts once they turn 70 1/2. The rule is designed to give the government its share of the taxes on the money, which has been accumulating tax free. Failure to take out the money results in a 50 percent penalty assessed by the IRS.
Suspending the mandatory withdrawal would allow people to keep the money in the account and possibly recover some of their losses when the market recovers.
Obama's plan would temporarily waive the penalties and taxes on withdrawals made after age 70 1/2. There's interest in Congress to get it done — sooner rather than later.
The chairman of the House Committee on Education and Labor, Rep. George Miller, D-Calif., has asked Treasury Secretary Henry Paulson to suspend the tax penalty immediately.
AARP, the Washington-based group that represents 39 million people aged 50 and older, also has urged Paulson to take the action right away.
(Excerpt) Read more at southbendtribune.com ...
there fixed
I would not be surprised that in the near future retirees will become Soylent Green like Edward G Robinson.
Anyone too young to have ever seen the movie should rent it.
ping
Note to persons with 401k’s:
If ther is away to be penalized now by dipping, strongly consider it.
Note to self: Must see if I can withdraw any of my non 401 type money to put in safer location, like my matress.
This is scary
The case of “forced” distribution of 401K funds at 70...came up with a friend of mine this past month. He really didn’t want to touch the money but the Vanguard folks are going to force the issue because of the law. His account was worth $200k two years ago. Its barely $120k currently because of the stock market losses. He’d rather wait two years before taking any funds out but the law isn’t written in a way to provide for that. Personally, this is the one idea that some folks might support. Makes me wonder why the Republicans didn’t bring this up two months ago? But again, a day late and a dollar short on real thinking has been the Republican slogan for the past year.
Eliminating 401K’s will crush, I mean CRUSH, the market. We’ll be partying like it’s 1929. I’m hoping Volker is able to head this one off at the pass.
Did Obama have any plan for 401k or retirement funds before the election?
Mattress = bad
Gun safe = good
But ole’ E.G. did have a nice send off. The movie is an interesting treatment of the global warming theme.
The first thing I have agreed with... I don’t think they should force the withdrawals but why do I have a feeling that people could keep the money in only to later be socked with some other new penalty they will create.
Dems Target Private Retirement Accounts
Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs
http://www.carolinajournal.com/articles/display_story.html?id=5081
Yep....the knuckle sandwich. bait and switch. The oldest Con in the books, and (given the election results) it will work. A penny today, tomorrow we take your bag of gold.
ping
Because I’m a gun owning Christian Conservative I’m halfway expecting to be sent to a reeducation camp within the next few years. I will be truly amazed if we will have another presidential election in 2012. History is repeating Germany’s 1930’s here in America with that Commie as Hitler.
Of course I won’t give up without a fight (from my cold dead hands) but two bullets will be saved for my beloved dog and cat because I would rather kill them myself than to have God only knows what done to them after I’m arrested.
The gov't has no business matching savings. Designated personal accounts will no doubt be invested in gov't obligations to fund liberal causes. Gov't obligations will end up being worth next to nothing. This is completely ludicrous.
of course being forced to do something is the point, but you could take advantage of the situation since he cant change it.
I wonder if this includes 403(b)’s as well.
In the movie Charleston Heston is a cop in the future, his best friend is retiring and accepts a peaceful assisted suicide with full surround sound and orchestrated music graciously supplied to the public so that instead of sitting in retirement homes drawing a pension the elderly can die with honor, however the world has a severe food shortage and so to shorten the story here CH follows his friends body to a processing plant that grinds the bodies up into something like a PowerBar,
See the movie.
McCain was the first to raise this issue, and suggested eliminating required withdrawals for retirees back in August.
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