In sum, because I have done without and contributed the maximum permitted by law into my 401K, I am screwed.
I have been using a Roth (post tax) contribution to my 401k, with my employer (who is really me) matching withing my 401K, for about $31K a year.
I wonder if I should cash out and just go stick it somewhere, taking the penalty, at least my Roth portion.
They can have mine liquidated paid penalty and bought silver 2 years ago. Sittin fat.
I don’t think that will save you. Remember the Klintoons “retroactive” income tax? If you take your money out in an effort to try and save yourself, they will retroactively tax your a$$et$.........
People were warned - government strings are attached to the tax deferral, so the government considers those accounts their property until all taxes due are paid.
They have been planning this for a generation - as a last resort, perhaps, but last resort time has arrived.
I’m concerned that the Roth conversion is a scheme to generate immediate income tax revenue through the conversions over the next two years, and then change the rules to tax Roth IRAs when they are withdrawn.
If you have a mortgage, you can always cash out your retirement plans, pay the taxes and penalties, and pay down principal on the mortgage with the remainder.
why do it?....I too have not had the fancy vehicles, the Ipods, the trips, the vacation homes etc because I thought it best to provide for my own retirement PLUS leave a little something for the kids....
it has hurt the tax situation...
but I am a little too young to pull it out...and that begs the question...where do you put it?...anywhere you have it it could be available to the feds...