Clinton Administration 401k Proposed Tax? (vanity)

3/18/13 | freedomposter

[FreedomPoster]

There are any number of places on the web referring to a Clinton Administration-era proposal for a "one-time" (yeah, don't get me started, either) tax on 401(k) assets of 15%. There are plenty of them are here at Free Republic. Boortz does it. The list goes on and on.

What I cannot find is anything really reference-able on the subject. "Boortz said it" or "xyz on Free Republic said it" really just doesn't cut it.

Does anyone here have a real source on this?

[old and tired]

It doesn’t matter if she’s actually said it already. Now that they want to tax savings in Cyprus, all the libs here will want to do it too.

[old and tired]

The advantage to a Roth is that you can withdraw principle without penalty. That’s what I plan on doing if the Cyprus grumblings reach here. In retrospect, I wish I’d have taken my retirement cash and buried into the ground. The government can no longer be trusted not to confiscate private property.

[silverleaf]

yeah they only tax you “one time” and you get the rst of your money.... in good time ...maybe in the form of govt IOU’s

you believe that and maybe you’ll get a refund of the temporary PA turnpike toll that was imposed to pay for the 1889 Johnstown flood

ask John Boehner, he trusts obama completely

[Nita Nupress]

This may help.
http://www.americanthinker.com/2013/02/the_feds_want_your_retirement_accounts.html

[memyselfandi59]

I sometimes think the talk about taxing 401Ks is intentional rhetoric from “the powers that be” to scare people into pulling funds out of their 401...here’s why.

If you pull money out:

1. automatic 10 percent penalty

2. the money you pull out is taxed at the percentage of your tax rate for that year (but when you combine your regular income and the money taken from the 401K, your tax bracket has changed.

Plus

3. the money pulled raises your income, probably raising your tax bracket, and the money you earned that year is also taxed at that higher bracket, meaning you probably didn’t pay enough in and will owe more to the IRS on your regular earnings.

In other words, if you pull money from your 401K, you’ll probably end up paying a much higher percentage to the government than if they tried to set an across the board percentage for confiscation.

Not that I’m for any tax on the 401K, but I often hear people say they’ll pull their money from their 401 rather than let the gov’t have it...well, the gov’t has it, either way the scenario rolls.

[abb]

The advantage to a Roth is that you can withdraw principle without penalty.

Those are the rules today only. What about tomorrow, next week, or next year? I still say the old accountant rule of thumb to always defer taxes immediately is the best strategy. Accountants know better than anyone that what is taxable and what isn't taxable changes with the seasons.

[sickoflibs]

I dont understand the idea at the link,
income into 401Ks and pensions are not tax free like say mortgage deductions are, they are tax deferred. You pay a % tax on whatever is there when you get it to spend after 65

The only reason why reporting initial contributions would help the Feds is if the value went down before retirement to force you to pay taxes on money you lost.

[old and tired]

You may be right. I think it’s dangerous these days to do anything that is deliberately taxed advantaged, including any IRA. There’s no question in my mind that the government will begin means testing social security. That’s another backdoor tax on IRA’s.

[abb]

There’s no question in my mind that the government will begin means testing social security. That’s another backdoor tax on IRA’s.

For years, I have thought the same thing. The only defense we will have against that tactic is to insist that Social Security be called "welfare" if/when that happens. What keeps SS politically palatable to the taxpayers is the fact that if you worked, you paid. Once you retire, you got money back.

If the day comes that you are told that even though you worked and paid in, you can't get it back, then the entire concept of it being a retirement plan falls apart. It is just another form of food stamps.

[rawhide]

If they only tax me at the 15% tax rate this article is talking about, I will have lots of money leftover.