Obama Administration Plans to Seize 401(k) Retirement Accounts

The New American ^ | 5/6/2010 | Joe Wolverton II

[HonestConservative]

Today McConnell wrote a letter from the Rs telling O “don’t even think about it” basically.

As to your question, my lips are sealed.

[Bluestateredman]

First they set up a system to entice workers to take their hard earned money and give it to corporations, who would then funnel a portion to the government.

Now they are emboldened and will soon be coming after your money directly. Nice.

[WOBBLY BOB]

Husband and I have transferred to a Roth IRA. We paid the tax penalty and will never pay taxes on that again!

until they retroactivley change the rules of the game.

[WOBBLY BOB]

Bend Over America: Now The SEIU Wants Your 401k!

Having ruined the pension funds of Americans nationally through corrupt and utterly unsustainable “projections” of future growth labor unions are now targeting your money to make up the difference:

One of the nation’s largest labor unions, the Service Employees International Union (SEIU), is promoting a plan that will centralize all retirement plans for American workers, including private 401(k) plans, under one new “retirement system” for the United States.

In effect, government pensions for everyone, not unlike the European system and regardless of personal choice.

Yes, because labor unions have done such a great job of managing their pension plans, right?

Oh wait, they haven’t. In fact, virtually none of them are actuarially sound, and they know it. So instead of addressing this (which would mean that workers would have to put up much more of their wages to be funneled into these funds) the SEUI is effectively advocating stealing your 401k - to cover for their outrageously rosy “estimates” on portfolio returns (which in fact have been negative over the last ten years.)

I may have been early in my “What’s Broken: All Of It” Ticker about a year ago, but it also looks like I was right.

http://market-ticker.denninger.net/archives/2121-Bend-Over-America-Now-The-SEIU-Wants-Your-401k!.html

[SumProVita]

If they even ATTEMPT such a thing, we will SUE (and we will not be alone)!

[WOBBLY BOB]

They way I understand it, you can’t “cash out” your 401k while you still work for the employer through which you acquired the 401k, even if you take the penalty and tax hit. You can’t even roll the entire amount over into a personal retirement fund (like an IRA) unless you change jobs, or quit the company.

The best you can do is take an “in-service withdrawl” of whatever fraction of your account total your particular 401k plan allows( generally about 25%) and roll it into a personal retirement fund.

Unless I’m wrong, if Obama wants to do this, there seems there’s nothing we can do about the confiscation of at least 75% of our 401ks, short of quitting our jobs, cashing out, and taking the penalty and taxes.

[OafOfOffice]

It’s one of the last bits of savings Americans have.Obama can’t get his hands on for power. Plus it would end up a slush fund like SS. You would get a lousy 3% return if your money was there when you retired. Might as well put it in a basic savings account.

Watch for Obama national savings plan too. You must opt out when it comes around or your employer starts taking it out.

[hugorand]

I know they’re floating the idea, but I don’t see it happening for one key reason: An attorneys most prized posession is their 401k, and they would have to be on board.