Remember when your wallet was your's?
Posted on 11/09/2008 5:53:17 AM PST by Libloather
Obama's retirement plan proposals
Retirees and workers with 401(k) savings may see changes.
By DAVID PITT
Associated Press Writer
November 09. 2008 6:59AM
The election is over and the message is clear — the economy is priority one. The big question now is how some of President-elect Barack Obama's campaign proposals will affect retirees and workers with 401(k) and other retirement accounts. Looking at them a bit closer may reveal some clues.
What are some of the ideas Obama has proposed that could impact my retirement planning?
One issue Obama has endorsed may get serious consideration before he takes the oath of office in January.
Obama proposed a temporary suspension of the required minimum distribution rule, which forces tens of millions of retirees to take money out of their IRA and 401(k) accounts once they turn 70 1/2. The rule is designed to give the government its share of the taxes on the money, which has been accumulating tax free. Failure to take out the money results in a 50 percent penalty assessed by the IRS.
Suspending the mandatory withdrawal would allow people to keep the money in the account and possibly recover some of their losses when the market recovers.
Obama's plan would temporarily waive the penalties and taxes on withdrawals made after age 70 1/2. There's interest in Congress to get it done — sooner rather than later.
The chairman of the House Committee on Education and Labor, Rep. George Miller, D-Calif., has asked Treasury Secretary Henry Paulson to suspend the tax penalty immediately.
AARP, the Washington-based group that represents 39 million people aged 50 and older, also has urged Paulson to take the action right away.
(Excerpt) Read more at southbendtribune.com ...
Watch for the confiscation of all wealth followed by the collectivization of all private property.
Prepare that extra bedroom for a welfare bum obama voter. And stock the fridge with MD 20-20.
“The current retirement system, Ghilarducci said, “exacerbates income and wealth inequalities” because tax breaks for voluntary retirement accounts are “skewed to the wealthy because it is easier for them to save, and because they receive bigger tax breaks when they do.””
If I understand post 26, this is not true, since most of the value of the retirement accounts is capitol gains, however the withdrawals are taxed as ordinary income.
“RATS will start to tinker with the system. Gird your loins.”
You have to really give these Libs one thing - they got chutzpah.
In 2005, President Bush proposed deposit accounts, which the Libs called “stealing Soicial Security”. Now they are all for them.
Before the election, it was tax cuts for 95%; but he didn’t say 95% of TAXPAYERS. Now, they are going to give a bone - no taxes for seniors who make less than $50K/yr - while preparing to steal billions.
I’m following the example of my glorious leaders - Don’t pay property taxes (Rahm Emmanuel), plead ignorance (Dodd and Dorgan), cheat on your taxes (Kennedy, et. al.) and basically ignore the laws.
The State can manage your money for you better than you can, and they’ll see to it that your earnings are channeled in the right direction; i.e., to Obama’s supporters. Ownership is “selfishness” and will be eliminated in the New American Collectivist Paradise - unless you’re one of the commissars in charge, that is. All comrades are equal, but some comrades are a little more equal. From each according to his ability, to each according to his need.
Another justification for Ghilarducci’s plan is to eliminate investment risk. In her testimony, Ghilarducci said, “humans often lack the foresight, discipline, and investing skills required to sustain a savings plan.” She cited the 2004 HSBC global survey on the Future of Retirement, in which she claimed that “a third of Americans wanted the government to force them to save more for retirement.”"Ooh, baby it's a wild world. It's hard to get by just upon a smile."
“I’m not sure what God thinks about suicide.”
In most cases it would likely come under “Thou shalt not kill.”
Taxes, penalties, mortgage interest is deductable, ask your accountant
Your quote: The case of “forced” distribution of 401K funds at 70: Makes me wonder why the Republicans didn’t bring this up two months ago? But again, a day late and a dollar short on real thinking has been the Republican slogan for the past year.
McCain did bring this up as something he would do. NO one listened except Obama said it was a good idea. I thought it would happen because it is the right thing to do and both parties would rush to do it.
But the question I have are:,
Will HR departments be deluged with request for information on :
"Inservice Withdrawals", if their plans allow them,
and,
With the Obamanista's back-date those who try?
For your reference on "Inservice Withdrawals" see the links below:
http://www.forbes.com/forbes/2008/0225/046.html
http://www.investopedia.com/ask/answers/169.asp
http://www.accumulatingmoney.com/can-i-rollover-my-401k-while-still-employed/
Something along these lines wouldnt surprise me.
Exactly. They want the elderly to leave the money in until they die. Then the government wants to take at least half. That was one of the features of the 401k confiscation plan they studied in committee.
The Dems will realize this is the third rail of politics.
I will cash out and take the penalty before they get their hands on my money. I also know I am not alone in that.
They’ll have to pry my 401k (private property) from my cold, dead hands before they lay their mitts on it.
She cited the 2004 HSBC global survey on the Future of Retirement, in which she claimed that “a third of Americans wanted the government to force them to save more for retirement.”
Yeah, who cares what the other TWO THIRDS want? ! ?
I am certain that the goal is to prevent retirees from getting SS benefits if they have money in their 401K’s. They will have to exhaust their savings before SS kicks in. After all, only the rich save in their 401K’s.
In Mao’s China, families exchanged children so they wouldn’t have to eat their own.
It’s true — I’m not making a joke.
It would be good if people would read the article before posting comments on it.
Remember when your wallet was your's?
Thanks for posting that link.
“Thou shalt not kill.”
Not to be argumentative here but does that also mean that God is against the death penality?
I’m a newbie Christian of 18 months and I’m still learning....
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