Skip to comments.Now He's After Your 401(k): Obama's budget for fiscal 2014 caps what you can save in your IRA
Posted on 05/01/2013 10:39:14 AM PDT by SeekAndFind
How many times have you read financial-advice stories lecturing you to max-out on your IRA, save as much as you can in your 401(k), and even pay taxes now to change your regular IRA into a Roth IRA that will be tax-free until you die?
Well, be careful how much you save.
That's the message in President Obama's budget for fiscal 2014, which for the first time proposes to cap the amount Americans can save in these tax-sheltered investment vehicles. The White House explanation is that some people have accumulated "substantially more than is needed to fund reasonable levels of retirement saving." So Mr. Obama proposes to "limit an individual's total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million for someone retiring in 2013."
Thus do our political betters now feel free to define for everyone what is "needed" for a "reasonable" retirement. Not to be impertinent, but does this White House definition include being able to afford summers at age 70 at Martha's Vineyard near the Obamas?
The feds may think $3 million is all you need after a lifetime of work, but that's roughly the value of a California police sergeant's pension if she works for 30 years, retires at age 50 and lives to normal life expectancy.
Out in the private economy, people generally have to work longer than that before they retire, and some of them do manage to save significant amounts. We're talking about people who work for decades and abstain from buying bigger houses or the new car so they can contribute the maximum to their 401(k)s or IRAs. The people who defer gratification and build a nest egg to avoid becoming a burden on their kids
(Excerpt) Read more at online.wsj.com ...
This is directly from Saul Alinsky’s playbook.
Think of the word Obama used to get gay marriage accepted EVOLUTION.
During the 2008 campaign, he said he was against gay marriage... now, he evolved and accepts it.
Same thing happened to abortion. First, it was limited to the early trimesters, now, even full term babies are being aborted ...
Things dont change with a big bang, Freedom isnt taken away immediately, the right to own firearms is not taken away at once... the changes creep in slowly, make people docile so that they can get use to it... until suddenly... it is too late.
Same thing will happen to your IRAs and 401K. They will attack the very rich first ( e.g. you cant save more than $3 Million dollars in your IRA ). Then slowly but surely, the term rich evolves until YOU are the rich who gets targeted.
That has ALWAYS been the Saul Alinsky strategy.
Then NO MORE DAMN GOVERNMENT PENSIONS THAT PAY OUT $250k+ a year forever. At least with 401k retirement funds, there is no taxpayer funding/bailout.
this, sadly, is not our problem....would love to have a “problem” with a big retirement...
“...to each according to his needs.” - Where have I heard this before?
Obama’s billion dollar marxist friend Warren Buffett doesn’t pay all of his taxes as it is.
I loathe the Left telling me that “I” have too much.
This isn’t going to hurt the rich like Bammy thinks it will. And he knows it. This is all to prevent people from amassing wealth.
They can shelter funds in trusts now, so the taxman may get a bite now, so what. Or they will find a way to open retirement accounts for other family members and transfer or deposit money into those new accounts, tax free. So what about limits, now each person has a 401k or IRA that can be filled up to a certain limit without problems, big deal.
It’s about looking good for the poor democrats looking like he’s done something to the evil rich people. Gotta keep all the democrats on that plantation, Barry.
WHO THE F#$ ARE THEY TO DETERMINE HOW MUCH WE “REASONABLY NEED” TO RETIRE ON???????????
I loathe rich Judas Goats like Buffet and Bill Clinton arguing for this crap, moaning about personally “having too much”. Expecting us to believe their lies.
If they have too much, nothing says they can’t give it away, or send more money in to the Treasury. Problem solved.
They are just Judas Goats. Appealing to other guilty liberals who feel they have too much, but don’t want to give theirs up either.
When I first signed up for a 401(k), my Grandfather (God rest his soul) flipped out.
He had lived through the great depression, remembered FDR seizing gold and inspecting safety deposit boxes, and said “They will take that 401K to help out someone who already spent their savings.”
I fear he was right.
Some misunderstandings of Constitutional freedoms are best reformed with a baseball bat.
Don’t worry about your retirement. Obama’s gubmint will take care of you. Just take your pill and be happy.
RE: this, sadly, is not our problem....would love to have a problem with a big retirement...
Not talking about you personally... but such people — those who don’t have million dollar IRA’s are the ones Obama will be targeting FOR SUPPORT in the name of “fairness”.
And of course, a lot of them will just shrug their shoulders and say — “knock yourself out Obama, this does not concern me at all. I don’t have a million dollar retirement account.”
First they came for the communists,
and I didn’t speak out because I wasn’t a communist.
Then they came for the socialists,
and I didn’t speak out because I wasn’t a socialist.
Then they came for the trade unionists,
and I didn’t speak out because I wasn’t a trade unionist.
Then they came for the Jews,
and I didn’t speak out because I wasn’t a Jew.
Then they came for the Catholics,
and I didn’t speak out because I wasn’t a Catholic.
Then they came for me,
and there was no one left to speak for me.
our founders would be shooting by now.
Who’s to know when hyperinflation will hit?
Why are they the deciders about how much money I need for my future?
Who made them the arbiters of smart when it comes to my retirement needs?
These people have no smarts when it comes to financial planning. They are socialists. If they were smart, they wouldn’t be socialists. Obama looks at the 1,000,000,000,000 deficit figure we’re running each year and thinks the zeros are “O” ‘s as in COOOOOOOOOOOOOL.
I don’t think they’d limit themselves to muskets, either.
RE: They will take that 401K to help out someone who already spent their savings.
Your Grandpa has the gift of prophecy... on second thought, he has the gift of learning from history.
That’s the observation I was avoiding authoring....
No one I work with will come near a $3M cap.
But there is a principal involved....yes?
From your photoshop to God’s eyes.
I live to see this day!
I stopped adding to retirement savings as soon as this chatter moved into the liberal mainstream, about ten years ago. Now that I’m retired, I am glad I didn’t put more money where they could find it so easily.
The next step is to mandate a small percentage to be invested in “safe” government securities to protect against a potential market collapse. Then they will up the percentage until most private retirement funds are heavy into government debt. The FED can’t finance $85 billion a month forever.
Might be time for a peaceful march on Washington. Perhaps called the French Revolution II Celebration. Might get the attention of some of these criminals.
And when the economy completely crashes it will be on all TSA, IRA and 401ks.
Cause you won the lottery of life and all.
They will come for it, soon. At all levels. They will sell it as, It’s unfair to those that have nothing that you saved and are gaining tax free intrest. This is prime pickings for the Redistribution crowd.
The master overlords.
The devs of reality.
The gods of Earth.
RE: The next step is to mandate a small percentage to be invested in safe government securities to protect against a potential market collapse. Then they will up the percentage until most private retirement funds are heavy into government debt
Yep, that’s the plan.
If a frog is placed in boiling water, it will jump out, but if it is placed in cold water that is slowly heated, it will not perceive the danger and will be cooked to death.
We need an “Eagle Eye” event !
I think I’ll be dead before that happens, if not, I’ll sell all the bullets I’ve been making...1 at a time.
Yup. You can bet that Obama is eyeballing the prize. When he thinks the time is ripe, he’ll simply seize all private retirement accounts (for the public good) and leave gubmint IOUs to pay you back in monthly entitlement checks in the amount that they determine is right for you after you “retire.”
Exactly. When the $205K limit is offically proposed, demand that the same cap apply to all federal, state and local government pensions.
What happens if you accumulate too much?
Do they confiscate your 401K?
As I’ve repeatedly stated, retroactive slavery will get you a civil war from me.
Yes they will. Bernanke’s inflation is just forestalled. $3M will be what you need for a middle class lifestyle very soon.
He died 12 years ago.
Miss him, but glad he didn’t see the fourth turning. He went through it the last time, and had no illusions about it.
I fear for my kid.
I dont expect to be able save >$3M so the GOP will take a hard do or die stand against that idea, however I do pay state sales taxes so I expect the GOP in the House to screw me on that like many in the Senate just did.
Not with military cuts. We’d have to get some really, really big pay increases.
It always happens this way. They know exactly how to turn this country into a communist paradise, and they are succeeding.
What if that $3 million is inflated to be about 300k of today’s dollars?
Think you might, in a lifetime of saving, accumulate 300k?
What if they inflate at a worse rate than that?
I heard they’re adding 6% per month to the money supply - that’s gonna hurt.
Anything additional that you put in will be taxed as income and not tax “advantaged”.
My first reaction was, ‘there is no way this will ever be passed’, but that is what my first reaction to obamacare was.
(Please Run, Sarah)
These liberal thiefs are very clever!...They figure the majority cannot or would not object to a cap of $250,000 in retirement savings to live off of...BUT IT’S NOT THEIR MONEY and that would be just the first step. Next, they would determine the cap at $100,000 then $50,000 and so on...REDISTRIBUTION doncha know? GO TO HELL LIBERALS!!!
THAT is what dreams are made of.
As I said, the GOP wont touch that because those it effects those with big $$$$, but collecting Amazon sales taxes for my lib state?
A bunch of GOP Senators just voted to do that.
And they would be arrested and charged with murder. If/when the shooting starts the conservatives will be labeled murderers or terrorists (already are) and prosecuted. There is no concept of liberty to 80% of this country’s inhabitants.
I had very little in mine since it almost got wiped out. Due to medical bills for a child injured in a wreck I had to forgo rebuilding it. So, I sold my house and lease now so I have no ties to anywhere and nothing they can come get, paid off most of debt and invested in ammo, supplies, and staples and pocketed the rest in other places.
I have some family land to run to if needed.