U.S. Government plots to confiscate your retirement funds.

The Silent Majority ^ | 09-05-10 | Southernman

[Lexluthor69]

With the government facing an escalating crisis of debt it seems they are becoming increasingly creative (devious) with solutions.

We have reported previously on the U.S. government’s intimations that they would move to nationalize private retirement accounts (Obama’s Socialist Government Coming For Your Pension ). Now it seems that the Department of Labor and the Treasury Department are beginning to take the steps necessary to do just that.

The following excerpts come from an article entitled “US Departments of Labor and Treasury Schedule Hearing on Confiscation of Private Retirement Accounts“:

On August 26, the US Department of Labor issued a news release (http://www.dol.gov/ebsa/newsroom/2010/ebsa082610.html). It lists the agenda for the joint hearings being held with the Department of Treasury September 14-15, 2010 on what is euphemistically called “lifetime income options for retirement plans.” The hearings are being conducted by the Labor Department’s Employee Benefits Security Administration.

I don’t like speaking in tabloid-style terms, but the unstated agenda of these hearings, as I understand it, is to push for the US government to eventually nationalize (confiscate) all assets in private Individual Retirement Accounts (IRAs) and 401K plans!

The US government is desperate to get its hands on private assets to help cover soaring budget deficits and debts, and this is simply the largest and easiest piggy bank that could be seized. The Investment Company Institute estimates that at the end of 2008 that there were $3.613 trillion of assets in IRAs and $2.350 trillion of assets in 401K plans.

[ought-six]

If the politicians were stupid enough to do that they would be tracked downed and hanged.

[ought-six]

Track downed = tracked down. I need another cup of coffee.

[CPT Clay]

Anybody know where I could get a couple of AR-15’s and about 10,000j rounds?

[calcowgirl]

I would suggest that only time will tell whether the author is a “nutcase”, or is simply better than you at reading between the lines of bureaucratic double-talk.

The author has been predicting the same thing for at least a decade (he wants you to buy gold). I've been involved in the bureaucratic double-talk business for twice that long. I am well aware of Government meddling and overreach; but this isn't it.

Why, after about thirty long years of the IRA program being in existence, the sudden interest NOW?

Did you read the Federal Register RFI that I linked above? They are discussing more than IRAs and this is not a "sudden interest" -- they have hearings and make regulatory changes all the time.

Why do you think the government has suddenyl deemed it desirable to suddenly explore the idea of establishing a state-controlled annuity program when that area has been satisfactorily been handled by the private sector for generations.

??? Where the heck did you get that? ("state-controlled annuity program"). Nothing in the source material states such a thing, nor implies it.

Exactly what sort of involvement by the Department of Labor and the Department of the Treasury would you imagine to be useful or desirable as regards management of a citizen’s retirement savings?

I guess you're not familiar with EBSA (the Employee Benefits Security Administration within the DOL)? You know, the folks that administer ERISA (the Employee Retirement Income Security Act of 1974 that covers a variety of retirement and health benefits in private industry.) And since there is specific qualification criteria for the variety of retirement programs, and corresponding taxation implications, the IRS (Treasury Department) is involved.

In short -- this is nothing new. They have these hearings and make changes to regulations, all the time. ERISA has had major modifications since 1974: COBRA, HIPAA, etc.

For your reading pleasure:

TITLE 29 - LABOR (as of January 5, 1999)
CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM

[calcowgirl]

Of course, none of that is part of this discussion nor is it the subject of any of the source material.

[calcowgirl]

“provide lifetime income” implies a guarantee of a stream of income checks. The funding of this stream of income comes from somewhere. I infer that the government is investigating taking over annuities from the insurance companies, funded by the now-privately held IRA and 401K.

You infer based on WHAT? The "provide lifetime income" refers to the PRIVATE retirement programs that are regulated under ERISA. They've been overseeing retirement programs for decades. That doesn't mean they are going to take them over or "confiscate" anything.

Certainly, it will be sold as an option, then with a “you must opt out”, then with many conditions (regulations) on what limited subset of folks can opt out.

Now you're just making crap up.

[CPT Clay]

When you are hungry and scared, they control you.

[calcowgirl]

Better link to Title 29
http://www.law.cornell.edu/uscode/29/usc_sec_29_00001001——000-.html

[Thank You Rush]

I can’t imagine anything that would get the people more on a rampage than this. Then again, those with their hands out don’t have any worries while those who don’t, have the most to lose. I still don’t think this would be a PEACEFUL action for the administration to try!

[Windflier]

I'm sure my two uber progressive brothers (both with fat 401K accounts) never thought they were voting for this kind of "change".

[Senator John Blutarski]

calcowgirl wrote:
“The author has been predicting the same thing for at least a decade (he wants you to buy gold). I’ve been involved in the bureaucratic double-talk business for twice that long. I am well aware of Government meddling and overreach; but this isn’t it.”

..... I, and the rest of the American middle class, honestly hope that you are correct. But I frankly think you’re whistling past the graveyard. I don’t have any gold to sell, but I have been anticipating this very sort of move on the part of the 0bama administration for the past year - since congress heard testimony on the viability of the notion. Would you have ever believed before last year that the US government would functionally seize control of most of the American automobile manufacturing industry, dismiss by extra-legal executive fiat the legitimate claim positions of major creditors, and unilaterally award a massive ownership interest to a labor union?

On another point - no, I am not familiar with EBSA and am certainly not as well informed on ERISA as you appear to be. But I have had a lengthy multi-decade love affair with federal government regulations of a different but equally arcane sort. And I have learned that when the feds drop by and ask “if you’d like a nice piece of candy”, it is time to dive for the nearest foxhole.

[Senator John Blutarski]

calcowgirl wrote:
“The author has been predicting the same thing for at least a decade (he wants you to buy gold). I’ve been involved in the bureaucratic double-talk business for twice that long. I am well aware of Government meddling and overreach; but this isn’t it.”

..... I, and the rest of the American middle class, honestly hope that you are correct. But I frankly think you’re whistling past the graveyard. I don’t have any gold to sell, but I have been anticipating this very sort of move on the part of the 0bama administration for the past year - since congress heard testimony on the viability of the notion. Would you have ever believed before last year that the US government would functionally seize control of most of the American automobile manufacturing industry, dismiss by extra-legal executive fiat the legitimate claim positions of major creditors, and unilaterally award a massive ownership interest to a labor union?

On another point - no, I am not familiar with EBSA and am certainly not as well informed on ERISA as you appear to be. But I have had a lengthy multi-decade love affair with federal government regulations of a different but equally arcane sort. And I have learned that when the feds drop by and ask “if you’d like a nice piece of candy”, it is time to dive for the nearest foxhole.

[ex-Texan]

This is old news. Very old news. I first saw it happening in 2006.

Google's Been Reporting On the Subject Since 2008

Latest round of reports began in January, 2010:

The Coming Obama Retirement Trap Has Started!

Just like my comments on Fort Knox Gold. I was flamed and attacked without mercy on FR for mentioning the theft of our gold reserves. Recently Congressman Ron Paul has been talking about this insane, over-the-top, major scandal. So far he is the only one in Congress to take note. Bernanke knows the truth and lied to Congress about what he knows.

Our gold was probably sold to China over ten years ago. This is a major F****up . . . the whole world know about now.

[SwedeBoy2]

I do, But you’re going to have to talk with a couple nice young men that are Guarding the armory.

While you are at it, if you can convince them to give you access, Please pick up a couple of M60’s for me.

[Candor7]

You are not entorely correct. In the USA, they can enforce
confiscation for alleged crime,or income taxes, without a hearing.

1)The OECD members will not allow confiscation without a court hearing, which means that your estate has to be large enough for the IRS, for example, to retain attorneys to bring a suit against you in say, Panama.You would have to be a multi millionaire to make it worth their while.

2) Secondly, the foreign court will not allow the confiscation of an individuals assets,IF it would not be a result under their own law re Crime, or taxes owed.This is the way treaties are enforced.

Its simple. You just pay your US taxes on the money you
have abroad.They can’t really touch you.

[Candor7]

1) See what the penalty would be to get out of 401(k) or IRA. Decide to do it or nolt do it.

2) Go to a foreign country and set up a bank account.

You can purchase inexpensive books on how to do it here:

http://www.sovereignsociety.com

3) Transfer your funds to the foreign jurisdiction, making sure you pay US taxes on the income, and filing a
Form TD F 90-22.1 with Trasury Dept by June 15 every year.

http://www.irs.gov/businesses/small/article/0,,id=148849,00.html

Note that the devil is in the details, I cannot tell you more because I do not know your situation.I assure you that there are completely legal ways to secure your estate from future government confiscation.Sovereign Society has pretty good information on it.

[Gaffer]

Sorry, I LOST my two in a freak boating accident...

[CPT Clay]

SURE ya did

[stephenjohnbanker]

Good advice, but anyone with over 200 grand should hire a tax specialist who is well versed in this. I moved 90% of my assets offshore prior to Jan 20 2009.

[M. Espinola]

Just wait until January-2010 when the most massive tax increases go into effect. Notice that these tax hikes take place two months after the November elections.