Posted on 10/22/2008 9:42:21 AM PDT by Bodhi1
For those who don't know, here's what it is in a nutshell:
Employee 401k contribution are automatically deducted from their paycheck each pay period. This money is taken out before the employees paycheck is taxed. The contributions are invested at the employees direction into one or more funds provided in the plan. Employers often "match" employee contributions, but are not required to do so. While the investments grow in the employees 401k account, they do not pay any taxes on it.
The individual is using his or her property to ensure a prosperous future before the government has a chance to seize it. It is a great plan. I take advantage of it at work, as do many of my co-workers. You should see how attentive some of these folks are to the stock market.
The key part of the plan is found in the last sentence of the above quote. House Democrats are considering abolishing those tax breaks.
(Excerpt) Read more at allamericanblogger.com ...
I would hope that more than a handful of "we the people" would start to utilize our second amendment rights for their intended purpose.
You're probably going to pay off your house and you'll be in a lower bracket. Nice trick. Also, how will you make your expenses on that lower income with an increased cost of living. I guess you'll hunker down, not drive or travel and never need money to replace or buy anyhing. Pass the joint when you're done.
Just to drive you crazy. Borrow equity, it's not taxable. Pay 4% (net after deduction) and invest it at 9.62 tax free, with a death benefit, no age restrictions, or contribution limits. Are we high enough yet?
Each worker would receive $600 each year tax free from the gov; the employer is required to deduct 5% of the same workers pay to be held by SSA; so everyone making more than $12,000 per year will see an additional 5% payroll tax on top of their current 6.75%; no cap was mentioned.
The average worker would receive $600 and pay $1750 for anet increase of $1150.
Sounds fair to me./s
correction 9.61.
Are you saying take out the 401k now to avoid the higher taxes later? Hmmmm... Would it be better to pay the principle on the house since we can write that interest off?
Might as well, the darn 401K has shrunk immensely the past six months.
401K plans are really just welfare payments to Wallstreet, courtesy of the tax code.
They have surreptitiously usurped our unrealized gains in our property and retirement savings via this financial mess driven by a GSE not under the scrutiny of any Federal Act, by Democratic Congressional neglect.
We may redefine wealth not by the size of our portfolios, but by what we have for tools to fix what we own and can do to survive. Conservatives may in that sense go off the grid and ride it out almost John Galtish, until it is time to come back into the world.
The funny thing is, they can't live without us, they haven't figured it out yet :-).....
We are very much on the precipice of a great acceleration down the road to total socialism.
We are the Little Red Hen and they are the freeloaders.
Fat and happy people don't revolt.
Once the tyranny is in place, that's when they can get rid of all of us "useless eaters", ie, we who make America work.
The 401K has been wildly popular ever since its inception. If the Dems try to touch it, there go the Dems. When Donna Shalala (Clinton's Secretary of HHS) said that they were going to go after ("capture") the taxes missed by money in 401k's, Clinton had the political savvy to tell her to STFU.
You clearly are. You're advocating paying 28% tax now on all my retirement, reducing my principal, to avoid paying likely 10-15% on the portion of my retirement beyond my exemptions and deductions when I retire.
I'm sure I can come up with some bogus example to prove my point as well as yours, but I really don't have the time.
"A bird in the hand is worth two in the bush."
Qeers and RATS,hide the chillins.
I’ll take my chances
If you live 36 years after retirement the cost of living will probably double twice. So, how will you not outlive your money?
If I live 36 years after my retirement I’ll be 98. I don’t think it’s in the cards. And if it is, I’ll take my chances.
If you pay 500 a month for 35 years, and you make 7.5% and are in a 33.3% state and federal marginal bracket, you'll have $1 million after 35 years. You deferred $70,000 in taxes (2,000 a year).
OK
You'll pay $333,334 in taxes on the roll out and then taxes on the dividends when you reinvest and live the rest of your life. Total projected taxes in 35 years, $775,000-823,000.
Here’s where you lost me. When I retire I’m not cashing in or reinvesting anything. I plan on rolling my current 401K into my existing IRA and give myself an annual “allowance”. I will pay taxes based on the amount of my allowance.
If you pay $500 a month into a non-taxed deferred plan you'll pay 70,000 in taxes over 35 years of work. Nothing during 35 years of retirement. At 1 million in the fund, you'd have $75,000 a year tax-free.
I’m to old to do anything for 35 more years. Are you an insurance salesman?
That was Clinton, this is Obama, he plans on being POTUS for life, like Chavez.
Even at somepoint even the most liberal loon relatives we have (and I have heard this, yet they won’t admit they may have some conservative tendancies) will utter those famous words from Mr. Newt. “It’s Not Thier Money!”. Even at somepoint if they go after their retirement savings or devalue the currency they will go B*!!$!+ Don’t kid youself, it is all about “The Benjamins” to a great deal of them....
Only if people valve their life more than their freedom for all. I am not one of them that valves life more.
A newbie insurance agent at that. He also fails to explain the high front end commissions and loads of permanent insurance.
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