Posted on 01/25/2016 9:35:05 PM PST by Olog-hai
requiring employers that don’t offer a retirement plan to automatically enroll their workers in an Individual Retirement Account.
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This is precisely why I fired all of my employees and went to a “temp service” since December 2012. I am sick of all the employer mandates. Screw it. Obama has been going after small business since October 2009 with mandates and we are drowing in regulation. Company benefits administration companies are the big cottage industry to manage all the regs. I just stopped playing the game.
That was my first thought as well. We know that all of the Democrats (and probably 3/4 of the Republicans) in D.C. have been casting their greedy eyes on retirement accounts for decades.
Do people understand what Obama's goal is?
It is this: to "spread the wealth." And he is expanding "access" to IRAs because when the stock market really does crash, he is going to implement his plan to seize and "consolidate" all IRAs, TSPs, and 401Ks.
This is not dreamland fantasy folks. He laid the groundwork over 2 years ago and ordered his agencies to draw up plans. There is an existing Obama plan, ready to execute in a "crisis", to accomplish this.
You are one of the few who gets it.
anyone can open a retirement account at any time, indeed its impossible to avoid all the advertisements for you to do so
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I’m 70 and have been getting those solicitations for the past 30 years at least.
Also have been getting solicitations for Medicare supplement carriers since I was 55 (Medicare doesn’t even start until age 65). Solicitations to join AARP since I was about 40.
I’m sure Obamas proposal has a justification proviso in Paul Ryan’s budget. sarc. I love our lawless government.
Precisely.
Normally, this might be a positive thing. ANY OTHER PRESIDENT doing this, I might be okay with the urging by said President.
But with THIS ONE?
He’s setting up the next communist President to confiscate it.
But if the gubmint don’t give you the money then you don’t got “access” like those privileged folk
Modest? The federal retirement system is very good. Many of those retiring today are still grandfathered into the old CSRS system, which was rich by modern standards. The feds switched to FERS in the 1980, which has a basic defined benefit pension of one percent of an employee's "high three" years of salary times years of service, accompanied by a thrift savings plan with employer match. Do not pity the poor federal retiree.
It’s still amazing after all these years the way Barack Obama pushes for things that wouldn’t have been a wet dream to any politician before. He really must be mass brainwashing. Why are we not in the streets again? Oh nevermind. Going back to sleep.
First of all, not all companies used to offer traditional "defined benefits" pension plans. Those that did were large companies. My father, for example, had a "defined benefits" pension plan with a large steel company. That company went bankrupt in the 1980's. They could not honor it, and worked out a "lump sum" payment at the time. Where did the money go? There never was a pot of money. The promises were made when times were good, managers at that time expecting profits and business would always remain good. Just like social security - there is no "lock box" - its all been spent already. Its only filled with government IOU's.
the ONLY defined benefits plans remaining in the last 20 years are with governments.
I call BS on that one. The money you put into your IRA was not taxed when you put it in. Therefore it is taxed when you take it out.
Isn't that exactly what he said?
No, it isn't what he said. He said "...although it surely IS long term."
The minimum age to withdraw from a traditional IRA without penalty is 59 and 1/2, The money you withdraw after 59 1/2 is taxed as ordinary income unless it’s a Roth IRA in which case you paid the tax up front, and your money is not taxed a second time.
Of course you don’t have to start withdrawing at 59 1/2 but when you reach age 70 1/2 you are required to start annually withdrawing equal amounts based on IRS life expectancy charts, and pay tax accordingly. (The goal is to collect the tax, not to deplete your IRA - you could simply withdraw the cash, pay the tax, and reinvest what’s left elsewhere.)
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