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To: ROLF of the HILL COUNTRY
The money that is taken from your paycheck is YOURS along with any interest/capital gains on it!!!!

That's not correct. You agreed to defer receipt of some of your compensation. If it was yours, you would have been taxed on it. You have a nonforfeitable right to the money at some time in the future, but today it's not your money.

32 posted on 11/07/2008 6:13:18 AM PST by trad_anglican
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To: trad_anglican

You can pull all your money out of the 401K today.....so to that extent it is your money. You do have to pay tax and penalties, but it is still your decision as to pull it out or not.


43 posted on 11/07/2008 6:32:04 AM PST by power2 (JMJ)
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To: trad_anglican

The money IS yours; the tax is postponed to encourage you to save it. You can withdraw it at any time if you’re willing to pay the tax and penalties for breaking a contract.

When Congress starts actively considering confiscatory legislation, you’ll see people yanking their money out in a hurry.


47 posted on 11/07/2008 6:39:10 AM PST by ROLF of the HILL COUNTRY ( The Constitution needs No interpreting, only APPLICATION!)
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To: trad_anglican
The money in your 401k is not technically yours. It's being held for you in trust
You have a nonforfeitable right to the money at some time in the future, but today it's not your money.

I thought the trust structure was to prevent an unscrupulous employer from accessing the money.

Why can plan participants take a lump sum distribution (minus substantial taxes and penalties) any time
before age 59 ½ if it's not their money?

I think the poster of this thread raises a good question.

I also wonder why no elected republican has stepped forward to explain exactly why
this "confiscation" can't legally happen.

51 posted on 11/07/2008 6:41:09 AM PST by greedo
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