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Now He's After Your 401(k): Obama's budget for fiscal 2014 caps what you can save in your IRA
Wall Street Journal ^ | 04/12/2013

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 ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: 401k; 401kcap; allpropertyistheft; budget; ira; iracap; marxism; nakedmarxist; obama; obamunism; redistribution
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To: SeekAndFind

It always happens this way. They know exactly how to turn this country into a communist paradise, and they are succeeding.


41 posted on 05/01/2013 11:25:45 AM PDT by I want the USA back (Pi$$ed off yet?)
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To: sickoflibs

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.


42 posted on 05/01/2013 11:29:14 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: Uncle Miltie

Anything additional that you put in will be taxed as income and not tax “advantaged”.


43 posted on 05/01/2013 11:30:05 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind

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)


44 posted on 05/01/2013 11:34:25 AM PDT by wattsgnu
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To: SeekAndFind

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!!!


45 posted on 05/01/2013 11:37:31 AM PDT by AngelesCrestHighway
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To: SeekAndFind
They paid the price for us not government!!!
46 posted on 05/01/2013 11:40:10 AM PDT by AngelesCrestHighway
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To: AngelesCrestHighway

THAT is what dreams are made of.


47 posted on 05/01/2013 11:42:50 AM PDT by Gator113 ( ~just keep livin~ I drink good wine, listen to good music and dream good dreams.)
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To: MrB
RE :”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?”

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.

48 posted on 05/01/2013 11:43:21 AM PDT by sickoflibs (To GOP : Any path to US citizenship IS putting them ahead in line. Stop lying about your position.)
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To: Jim Robinson

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.


49 posted on 05/01/2013 11:46:43 AM PDT by Resolute Conservative
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To: VRWCarea51

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.


50 posted on 05/01/2013 11:50:01 AM PDT by Resolute Conservative
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To: 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?

And why do you think that advice was so ubiquitous? IMHO, they've had this plan in mind since the programs were created.

51 posted on 05/01/2013 11:54:13 AM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: SeekAndFind

When they come for those first three I will help them!


52 posted on 05/01/2013 11:56:51 AM PDT by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: Uncle Miltie
What happens if you accumulate too much?
Do they confiscate your 401K?

That's paranoid talk! They'll make you withdraw the overage, and assess a fee of perhaps 62 percent on the overage. And of course you have to pay your taxes (on the overage before fees). See, they won't take it all.

53 posted on 05/01/2013 12:01:38 PM PDT by roadcat
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To: roadcat

Yeah. Go ahead and see what happens then.


54 posted on 05/01/2013 12:37:36 PM PDT by Uncle Miltie (All observant Muslims want to kill you. If they don't, they are not really Muslims.)
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To: Resolute Conservative

>>>I have some family land to run to if needed.<<<

If they’re at the stage of stealing your wealth, stealing your land is an easy next step.


55 posted on 05/01/2013 12:48:32 PM PDT by redpoll
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To: SeekAndFind

This is “foot in the door” BS.

Hopefully you don’t get sick in retirement.


56 posted on 05/01/2013 12:53:12 PM PDT by headstamp 2 (What would Scooby do?)
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To: redpoll

True but i count on them not being able to occupy all the land in the country.


57 posted on 05/01/2013 12:58:04 PM PDT by Resolute Conservative
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To: Jim Robinson

Government greed.


58 posted on 05/01/2013 12:58:45 PM PDT by spudville
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To: Resolute Conservative

They occupied Russia and China. Acreage, sadly, doesn’t seem to be a deterrent.


59 posted on 05/01/2013 1:00:01 PM PDT by redpoll
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To: SeekAndFind
I'm usually the last person to defend Obama on anything, but the proposals here are hardly outrageous. Consider this:

1. The Federal tax code already caps IRAs and 401(k) accounts. What it doesn't do right now is cap the total value of a tax-deferred account, but it does limit the tax deductibility of contributions up front.

2. The $205,000 annual limit is based on Section 415(b)(1)(A) of the Internal Revenue Code, which limits the amount of money that can be paid out to a pensioner under a defined-benefit plan.

I don't think these changes will see the light of day, but it's hard to complain about changes in the tax code as they relate to a retirement system that is already heavily regulated and has enormous incentives under the tax code as it currently stands.

60 posted on 05/01/2013 5:20:27 PM PDT by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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