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.
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