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Disturbing Trend -- and Worse to Come [Hardship withdrawals from 401(k)'s at record high]
American Thinker ^ | August 21, 2010 | Eileen F. Toplansky

Posted on 08/21/2010 5:22:10 PM PDT by 2ndDivisionVet

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To: ponygirl

It is my understanding that if YOU have an IRA, YOU own it. It’s individual. 401(k)s are through corporations.

IIRC, it’s the 401(k)s 0bama, the Democrats & feds have discussed ‘bailing out’ or ‘appropriating’ or some such nonsense. That represents a whale of a lot of $$. And Soros has gone in nearly all gold & commodities.

They want the money, or, to have us spend every last cent we have.

It’s interesting that 0baSoroXerxes think they will be able to hold the reins with their Bilderberg buddies.

They won’t.


21 posted on 08/21/2010 6:20:51 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spirito Sancto.)
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To: Grams A
I have stopped all my contributions and I'm in the process of withdrawing all of my funds. I'm willing to pay taxes now, since taxes will never be lower and I'm terrified of the government seizing all retirement accounts.
22 posted on 08/21/2010 6:21:39 PM PDT by MrsPatriot (I prefer dangerous freedom to peaceful slavery.)
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To: 2ndDivisionVet

At least the government isn’t doing it...(yet...)

Also it’s better than taking gov’t money...


23 posted on 08/21/2010 6:23:19 PM PDT by RockinRight (Outrage does not make the law.)
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To: 2ndDivisionVet
CHANGE

Second thoughts abound presently I bet.

24 posted on 08/21/2010 6:25:27 PM PDT by EGPWS (Trust in God, question everyone else)
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To: Nepeta

I hate when people presume that those who are jobless can just sit on the toilet and sh*t out money.

Reading FR you’d think we could.

Thankfully my family is doing OK financially, but I know many in your position.

Best of luck to you.


25 posted on 08/21/2010 6:25:37 PM PDT by RockinRight (Outrage does not make the law.)
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To: 2ndDivisionVet
I saw almost the identical report on ABC News last night. I can only speak for myself and the plan I'm under but:

1) If you take out a loan and are employed, the money comes back out of your payroll and goes back into the plan - as does the interest on the loan - since you are essentially borrowing money from yourself. Yes, it hurts your nest egg temporarily and over the long run, but it isn't fatal as long as you stay employed and the debt gets paid.

2) If you take it out as a payment, you get hit with high taxes twice - first at the time of withdrawal and secondly as income. When I did it, there was no preconditions for hardship and I did not have to get permission from my employer. I'm also below age 59.

3) When a co-worker was asked what happens if he loses his job and has a loan outstanding, he was told he would be sent a passbook and would be expected to make monthly payments as before. ABC News said you have to pay back every penny to the 401k immediately, which would be a hardship to most people who took out the money in the first place.

4) The interest rates on the loans were much better than what I could have had with a personal bank loan, which is why I took them out. You could not withdraw more than 50% of your balance and could not take out more than two loans at a time.

26 posted on 08/21/2010 6:25:46 PM PDT by OrangeHoof (Washington, we Texans want a divorce!)
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To: who_would_fardels_bear
But the Democrats were expecting to keep Medicare and Social Security solvent by taxing our 401k's.

But the Democrats were expecting to keep Medicare and Social Security solvent by RAIDING our 401k's.

Fixed.

27 posted on 08/21/2010 6:31:04 PM PDT by CommieCutter (A Centrist Democrat is now defined as: between Socialism and Communism.)
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To: Jean S

bkmk


28 posted on 08/21/2010 6:34:11 PM PDT by Canedawg (...still not digging this tyranny thing.)
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To: zigmeisterxiv; combat_boots
So if I have a 401K from my former airline that I removed from their Fidelity 401K and rolled it into Vanguard, that's considered an IRA? And my 401k with my new employer, who offers a small match, is still a 401k?

Is it possible to roll the current 401k into an IRA so I'll have more control over it? Also, my employer recently offered Roth IRA plans, but I don't really understand that option either.

As an aside, I really don't like the Vanguard IRA... they really limit you on what funds you can buy into, and they offer no PMs or gold ETFs unless you've got beaucoup $$ to put in to start off.

29 posted on 08/21/2010 6:34:26 PM PDT by ponygirl
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To: raybbr
There used to be stories about how the govt. was going to take over all 401K's and manage them. I haven't seen one in a while and that scares me.

Good observation. It's foolish to think the government is not going to mess with 401k's considering what they have done so far.It's only a matter of time now,so you might as well use the money to take care of family needs

30 posted on 08/21/2010 6:36:01 PM PDT by stfassisi ((The greatest gift God gives us is that of overcoming self"-St Francis Assisi)))
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To: MrsPatriot

I don’t think that’s a bad idea at all,,,

A friend of mine is doing the same thing,,,

The gubmint can always swoop down and steal it,,,

Just leave you an IOU...


31 posted on 08/21/2010 6:38:50 PM PDT by 1COUNTER-MORTER-68 (THROWING ANOTHER BULLET-RIDDLED TV IN THE PILE OUT BACK~~~~~)
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To: ponygirl

IRA is for individuals. 401k is company-sponsored. Do I win a prize? LOL


32 posted on 08/21/2010 6:41:27 PM PDT by historyrepeatz
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To: 2ndDivisionVet

How’s....that....Hopey-Changey...Thing...Working...Out...for...Ya?


33 posted on 08/21/2010 6:42:49 PM PDT by BulletBobCo
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To: raybbr
If a blogger doesn't have enough respect for what he's written to post the whole thing then I don't bother giving them hits.

Amen and ditto. Too many blog pimpers around here.

34 posted on 08/21/2010 6:44:31 PM PDT by Graybeard58 (Nobody reads tag lines.)
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To: zigmeisterxiv

“So please refer to IRS Publication 575, and Form 5329 Instructions (line 2), to confirm this.”

Appreciate your concern, but we’re heading to a situation where Publication 575 won’t matter. Pretty soon it’s who pulls their weapon the fastest and who shoots the straightest.


35 posted on 08/21/2010 6:51:31 PM PDT by sergeantdave
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To: TopQuark
Look to Argentina and you can see the future of 401K’s in the US. The fed gov’t will grab all of them in due time to “sure up the Social Security system” or whatever excuse they can come up with.

So, all that money you have saved for 20+, 30+ years will be GONE!

You are better off putting your extra money in a Passbook Savings account.

I had a 401K a long time ago in a previous employer, I no longer contribute to one for the past 5 years ... they are worthless.

36 posted on 08/21/2010 6:52:53 PM PDT by CapnJack
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To: 2ndDivisionVet

Every dollar pulled from a 401k shrinks the money supply by about 95¢.

We call that deflation.


37 posted on 08/21/2010 6:59:27 PM PDT by RobRoy (The US Today: Revelation 18:4)
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To: ponygirl

These are basic answers to your questions...

Far as I know that prior rollover would be into an IRA and subject to penalty if removed before 59 1/2. I would imagine your statements from Vanguard would say Individual Retirement Account (IRA).

Your current plan, since employer has some match, would indeed be a 401k. There are some employer 401k plans that allow prior 401k to roll into their plan, but that varies and you need to ask them.

If your question is can your current employer 401k go into an IRA now, I believe the answer is no.

Roth IRA is post tax money and has easier withdrawal rules (while 401k money is tax deferred .. ie. you do not pay tax now on the $$$, but when you withdraw it).

If you have a Vanguard IRA now, you should talk to them or to your current employers benefits specialist.


38 posted on 08/21/2010 7:00:47 PM PDT by zigmeisterxiv
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To: ponygirl

I am not a financial advisor of any kind.

I do know a friend of ours cannot roll a current 401(k) anywhere while still employed by that corporation. Ditto for someone I know in TIAA-CREF.

I also know someone who took an IRA and moved it recently into CDs only. At that time, the financial advisor said that he has clients who are now in gold 100%.

Talk to a financial advisor about your options. Best I can say.

I have also listened in on a few hushed conversations of people who have sold rather expensive properties and have gone all cash, floating around and looking for a place to light or be ready to move quickly. Each of these conversations went mum when they realized I might be listening. They were interesting smidgens of conversations, considering these were in places known for their exclusivity.

Batten down the hatches. Everyone knows we’re riding low in heavy seas. Everyone. No matter their income.


39 posted on 08/21/2010 7:06:26 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spirito Sancto.)
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To: 2ndDivisionVet

If I had taken all my money out in 2007 and paid the tax and penalty on it, I would still have more than I have today.


40 posted on 08/21/2010 7:10:38 PM PDT by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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