Posted on 09/01/2010 5:56:28 PM PDT by Orange1998
On August 26, the US Department of Labor issued a news release It lists the agenda for the joint hearings being held with the Department of Treasury September 14-15, 2010 on what is euphemistically called “lifetime income options for retirement plans.” The hearings are being conducted by the Labor Department’s Employee Benefits Security Administration.
I don’t like speaking in tabloid-style terms, but the unstated agenda of these hearings, as I understand it, is to push for the US government to eventually nationalize (confiscate) all assets in private Individual Retirement Accounts (IRAs) and 401K plans!
The US government is desperate to get its hands on private assets to help cover soaring budget deficits and debts, and this is simply the largest and easiest piggy bank that could be seized. The Investment Company Institute estimates that at the end of 2008 that there were $3.613 trillion of assets in IRAs and $2.350 trillion of assets in 401K plans.
For more than the past ten years, I have warned readers that the US government was eventually going to go after private retirement accounts. I considered that as the most important reason to avoid establishing precious metals IRAs. Very few other writers (Ron Holland being one) have picked up on this issue as early as I did. In fact, the mainstream media pretty much ignored the subject even after a House Committee held hearings on the issue in October 2008.
Obviously, an outright seizure of assets would meet stiff resistance from the public. So the confiscation will never be described as such by government officials. Expect to see terms such as “retirement income protection” thrown around. It is highly likely that such a program would be implemented in steps to help overcome public opposition.
The US government plan is to eventually take ownership of all assets in IRAs and 401K accounts and replace them with US government “Treasury Retirement Bonds.” In the October 2008 hearings, it was proposed that these bonds pay a 3% interest rate. Another major change is that, upon retirement, the individual’s retirement account would be converted into an annuity. Once the individual is deceased, the individual’s heirs would not inherit anything (similar to what happens now with Social Security “accounts”).
EXCERPT
http://news.coinupdate.com/us-departments-of-labor-and-treasury-schedule-hearing-on-confiscation-of-private-retirement-accounts-0431/
Right....
Just like we should have waited to let OBAMACARE pass, and NOW we can scream about it? A little late, and will never be repealed.
I'm sorry; closing the barn door AFTER the horses are gone is not the way to operate.
Yet...
Give 'em time. They want and need the money.
The political class would certainly find pedaling this kind of crap a LOT easier and less painful that making the cuts that you mention (and I favor, btw). But politicians are incapable of cutting anything. We’re still stuck with the Dept of Ed, Energy, and the TVA, for cryin’ out loud.
They figure the American people are going to go along with this because they won’t understand it, but it “sounds” good.
All I know, is the fact that your heirs would get nothing under their system is the thing that MAKES it a confiscation scheme. Can you imagine having a half million or so in an IRA, and have them convert it to these piss poor gov’t bonds and you die a month later? Your kids get nothing?
It's already an option, for individual account holders. Do a Google search for "convert ira into annuity" or "convert 401(k) into annuity" and you'll see lots of articles about it. You can do it right now -- and it's been that way for decades.
This proposal is that 401(k) administrators should be required to provide the option to you. There is also a proposal to estimate the value of a 401(k) account in a form that people can understand: the potential monthly lifetime income.
The government has done a wonderful job with Social Security. Every dime collected is secure in a lock box. SARC
I quit contributing to my 401k January 2009, which was the first chance I had under the rules my 401k operates under. And it was EXACTLY because of this. I remember the whispers from these statements in 2008.
I figured they would eventually do this, and I’d be damned if I would put one more cent in there for them to take.
I can’t get anything out of it now, and it’s worth so little with all that has been/is going on.
I can’t believe that this wouldn’t crush the markets. But I suspect that is part of the intent.
Do a Google search for something like "convert 401(k) into an annuity".
Here's one of the results:
http://www.immediateannuities.com/ira/rollover.html
Note: this isn't an endorsement. I've used this site to see what current annuities were yielding, but have never bought anything from them, and I'm not selling anything.
Line ___________ Sand. They had best not cross it.
If that's the case, they will take everything (houses, bank accounts, cars, ...) anyway.
And how conveniently that hearings are scheduled right as China, et al are saying NO to any more U.S. Treasuries!
It’s amazin’ I tell ya.
:)
When you retire check in to tell us how it turned out.
OBAMAcare is going to result in the equivalent of a revolution in our government, just like in 1994.
OBAMAcare is dead. The Democrats just don't want to admit it yet. The polls are solidly against it, and while I don't expect it to be repealed wholesale, it's going to be gutted, one piece at a time until there's nothing left.
OBAMAcare only made it through Congress because no one could reliably predict the effects. But, you can't hide a proposal to confiscate IRA/401(k) assets, and if someone tried to pass such a bill, there would be a revolt that makes the tea party look like... well, a ladies' tea party.
20%...what are you a communist?
try starting at 50% and keep going from there...and don’t forget ending 100% of ALL forms of welfare and bailouts.
Just like healthcare is an option...what are you smoking?
They crack the door open...that’s all they have to do.
NO ONE IN THEIR RIGHT MIND WOULD DO THIS.
and I can not think of one that would have people coming to washington with torches.
I fully understand the ramifications of this type of Confiscation.
As you mentioned, the removal of the ability to Inherit.
But also the Forced conversion to an Annuity which disallows the possibility of any Lump Sum Withdrawal.
Many use their IRA or 401K as an Emergency Fund as well as Funding for enhanced Retirement.
previously I would have agreed with your post
but this govt stole GM from the bondholders, stuffed in 50 bil of taxpayer money, and gave it to the UAW
so all bets are off as to what they might try
mark
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