Boop His Cute Little Tootsies!
Pretty Baby Looks Innocent Now
But He'll Be Huge and Fiery Soon
Donate!
A Sponsoring FReeper
Will contribute $10 for each New Monthly Donor
Posted on 07/25/2011 2:53:17 PM PDT by bkopto
Those who believe our government is too honorable to raid private retirement accounts had better wake up! The seriously dangerous and wounded animal we know as government is fighting for its survival. It will do anything short of dying, reducing spending, or revealing itself as the Ponzi scheme it truly is.
Your notions of integrity, law, and morality do not apply to this animal. The biggest, meanest man in town is trying to escape death and will use whatever means possible. Rightly or wrongly, he believes you are his antidote and he is going after whatever he can get.
One hurdle to preventing government from taking such action might be the stock market. The shift in asset allocations required in retirement accounts would presumably be detrimental to the stock market. Whether it would crash or not is moot. Any such action would certainly reduce its value, which might be the best protection retirees have.
Unless government spending is reduced to the point that new debt grows slower than GDP, most retirement accounts will diminish dramatically. This conclusion is independent of whether government raids your IRA account. Hyperinflation will eventually result from continued quantitative easing (printing of money). That will destroy most savings and all fixed income obligations like bonds and pensions whether these funds are in or out of IRA accounts.
Things are going to get ugly. Prepare for the worst and hope for the best.
(Excerpt) Read more at americanthinker.com ...
you still will pay the taxes...the IRA will send you a 1099 and report your grab to the govt
And what is the total inflation hit over say 20 years? I’m leaving a big chunk in, but I’m taking some out this year. The only
reason I put so much in in the first place was the 5% company match.
They will never raid it IMO. If it passed the Senate, We would hear about it and hundreds of billions would be cashed out of the market the next morning,completely crashing it. People would take the 10% hit rather than lose 100% to the A*holes in DC. There is not enough money existing on the planet to satiate Washington.
I don't know for sure.
It is question of amounts. What is it worth for the Feds to pursue? Also, how "diversified" is the bank/geography? How easy is it for you to manage and what's your level of comfort with that bank/geography? For working stiffs like me with little net worth, having something off-shore that is easier to access and understandable (like Canada) might be good enough.
You do not have to quit to do that. Just tell them that you have decided that you want a different custodian, and are withdrawing all your money to do a rollover in 60 days.
Or you can do a direct rollover, but in a lot of companies it is faster to do a withdrawal or loan. Talk to your human resources department if you have one, or your IRA custodian about whatever rules they have.
Also consider vesting. If you are not vested, you may only get some of your company match. But your contributions and earnings on that money is yours and can be demanded at any time. They have no right to keep it (at least not yet).
You're right - at least on Tues., Thurs. and Sat.!
I’ve got all of my money safe in Russian banks. ;-)
Once you approach age 59 and 1/2 it is generally a good idea to withdraw funds from your IRA and invest it elsewhere.
But you have to be aware of the tax impact of those withdrawls.
When you become fully retired and live on investment earnings, you can compute IRA withdrawls to minimize the tax impact.
For example, you can alternate your charitable giving. Do two years worth of charitable giving in 2011 and take a large IRA distribution in 2011 to offset.
In 2012 no charitable giving and a small IRA distribution.
You worked hard to build the IRA nest egg, so it is important to work hard to not give it to Obama.
If and when the Feds get around to the legislation, I'm sure that the confiscation would have a retro-active date, thus locking out those looking to liquidate their accounts upon news of such legislation. The parasites aren't that stupid.
Remember though that it's a 10% penalty PLUS regular income tax.
The Baraqqi campaign is working.
My daughter works at one of the big mutual fund outfits that holds a lot of 401k and IRA accts. She called me an hr ago and said they’ve never had a flood of questions on this subject like they did today.
As long as they are friends of Putin, that's great!
And don't forget - ALWAYS PAY YOUR TAXES! ;>)
Arrest them for grand theft and put them in jail with Madoff.
The tax hit is meaningless. You pay income tax whenever you withdraw.
.......unless you bump up another tax bracket.
I'd rather pay the taxes now, given the counterparty risk of the US Government and given the uncertainty of future tax rates. I expect to be in a lower tax bracket at retirement, but who knows? At the rate things are going now, my future tax bracket/rate will be the same as it is now, if not higher! - so why contribute now in the face of these real, future risks?
“but this would be a line that would trigger the go signal IMHO.”
Yep!
I will also add that the first congresscritter that votes to take my retirement funds will be deemed enemy of my state.
This I completely agree with. There are not enough secret service people to protect them from the public wrath.
She said “without leaving the employer”. You can’t roll a 401k to a private IRA while you are still employed by the company that sponsors the plan.
I think there is a decent possibility that that age requirement will be raised between now and then.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.