If something like this passes, I’m wondering whether it would be wise to liquidate my 401K (about 140K after the losses) and pay off my mortgage. Would appreciate any FReeper advice.
Count me out. I started the process of liquidation today. The bank has to mail me forms to fill out. Once they get them back, the deal is done. No taxes or penalties are taken out until tax time. It'll be up to me to report the money by April 15 and pay any tax and penalty for premature withdrawal. I'm more than fine with that.
The banker dood mentioned that the RATS may remove the tax exempt status on these accounts. He also thought that the total confiscation of the loot would be met with huge resistance from account holders (kinda like the bank bailout scam - eh?) RATS will do what they want to do.
I can't afford to wait for the RATS to spring some cutoff date on 401Ks where owners will no longer have access to their own loot. Without the tax exemption, the plan no longer works for me. I'm done.
Taxes, penalties, mortgage interest is deductable, ask your accountant