Yes, it could be a BIG tax Hit . . But...like the Dolphins Owner, you can save some money if BHO increases the Taxes on the Rich.
Now, no need to withdraw and join the RICH so you can get a BIG HIT on a 401 K withdrawal. But some people don’t have that much money in a 401K . . Kids, College and all that.
If Congress passes that ONE, then they won’t get Re-elected.
It’s not nice for the Newly elected to mess with a 401K savings.
There are more people who do not have 401Ks than do. Those that don’t are probably leaning on union and corporate pension funds that do not really exist [under-funded]. Those voters will be glad to vote for the collectivist. Remember there are 220 million eligible voters in this country, 88 million do not pay taxes [and probably do not have 401Ks]. Add in the 20-25 million illegals [grant citizenship] and you have 120 million voters who would not kick the dems out for seizing control of 401Ks.