How the US Government Will Seize Your Retirement Account

EPJ ^ | 5-12-2011 | Simon Black

[Lancey Howard]

I always have this nagging suspicion in the back of my mind that America’s scumbag politicians always have the nagging understanding in the backs of their minds that some people in this country take the Second Amendment very, very seriously. That, at least, slows them down a little.

[Eska]

I have a neighbor, buying 2 new trks, snowmachines, everything he feels he will need (major purchases) for the rest of his life. Believes the govt will come after gold & silver like in the 1930s and it will be about worthless when they do, until our country no longer exists. He figures it's a better move to put his money in items that are going to go way up in price with inflation while there still is some value in his money. He might be right too.

They have been taking 8.6% a year out of both wife & my paychecks for a good many years for our retirement plans. Trouble is the only way I can move it is by moving out of state or retiring; figure we are further ahead by working until we die. The buggers got all of us by the balls. It will still upset quite a few Americans if the govt steals several hundred thou from each & everybody's 401s.

[OB1kNOb]

I like the way you think!

[CodeToad]

Hells Bells! You’ve got a rocking chair and a fishin pole?? You’re a rich white guy, huh?! Tax him!

[MrB]

This is how the elites will attempt to “keep their balls in the air” before the whole house of cards collapses.

[MeganC]

Time to convert dollars to fungible gold and silver. My family hedged into gold silver years ago so we’re sitting pretty and the people who derided folks like us as ‘gold bugs’ are wishing they’d listened when gold was around $300 an ounce and silver could be had for $3.50 an ounce.

[Red in Blue PA]

See the Beatles Taxman....they will tax the air.

[Tucsonican]

The sad part of this is that people will absolutely flock to the polls to support a decision like that. After the crash in 2008 I had more clients than I could shake a really big stick at crying for precisely this kind of “protection”. The foundation is already in place; the government has been bashing “big business” for more than 2 years and even on sites like this I’m seeing fanatical ravings against “corporate abuses”.

[happilymarriedmom]

Don’t they already tax these funds when they are withdrawn? And if you took all of your money out and did something else with it, wouldn’t you be taxed?

[rawhide]

What happens if all taxpayers are dead and only government workers are left, will the government survive?

[CharacterCounts]

This is when Congress will step in. Citing its desire to 'protect' the American people from future market shocks, the politicians will mandate that a portion of all managed retirement funds be invested in the 'safety and security' of US Treasury bonds. And, just to be on the safe side, let's park them in 30-year bonds that yield 4.35%.

I don't think they will directly take it. Instead, look for them to require all future payments to the plan to be put in a government "secured" type of trust with a "guaranteed" payout. If that sounds like Social Security II, it should.

Current funds will have a "grace period" where the owner can withdraw the funds and pay the income taxes on the immediately.

Just think what would happen to tax revenues, if every American suddenly opted to pay taxes on his or her 401(k) and 403(b) accounts.

[meyer]

If they take mine, they had better be prepared to die for I will go to war over this.

[muir_redwoods]

I’m thinking that converting IRA’s to gold, silver and lead might be a great idea. Doing so quickly and keeping it below the radar are the issues.

[Nip]

The scenario discussed isn't that much different from what happened to teh Social Security Funds in the late 1960s. That's right folks, nearly 50 years ago the Social Security was managed as a separate account. But, running short of money and since the dollars in Social Security were orphans the Federal Government seized all of the money, closed the Social Security accounts and moving the money into the general funds, and began issuing IOUs.

That act meet very little resistance. The IRA money will be the opposite. Why? The money in the various IRA programs aren't orphans that can be used for the general good. Each dollar is linked to a specific person and there is an audit trail to prove it.

When this happens, not “if”, it will be largest robbery every attempted. I call it robbery because that is exactly what it is. It will be the largest not because of the dollars involved but in the number of victims. And, the chance of a class action lawsuit to recover real, not imaginary, damages will never happen. After all, the Federal Government is immune to such legal activity, ain't it? Just ask them to find out.

[TheOldLady]

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[petercooper]

bttt

[muir_redwoods]

When you become convinced that the government has succeeded in making gold and silver worthless, please send me all you have. Gold and silver have never been worthless and, even when ownership became illegal, it still changed hands for value transactions.

[Joe 6-pack]

"...the torches to be sharpened and the pitchforks to be lit."

What exactly do you plan on doing with a sharpened torch or a lit pitchfork?

[twistedwrench]

"It's truly disgusting logic to force private workers to pay for years of political incompetence while absolving government employees."

Welcome to California

[Jack Hammer]

Kinda surprised Obama hasn’t done this yet; no doubt after he wins a second term he’ll start grabbing savings and pensions.