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 ...
I've stopped contributing to my 401K this year. I'll never contribute to it again. The counterparty risk of the US government is too high.
Now, I have to decide whether to pull the plug on my existing accounts, take the tax hit, and be done with the theives and parasites.
Other than no longer contributing, how to get one’s own money without leaving the employer?
I have met a few wealthy Americans (and other nationalities) who are keeping large accounts in Hong Kong, with local Hong Kong branches of Chinese State-run Banks.
Why? Because if US Treasury / IRS comes demanding info on their accounts, the Chinese will tell them to get screwed. You can’t trust the Swiss Banks any longer, as they have sold their souls to be allowed to play on Wall Street.
Its sad its come to this, isn’t it?
What about Canadian banks?
You can transfer to an individual IRA/Rollover account.
One Tuesdays, Thursdays and Saturdays I think the government is spreading the rumors that it will raid IRAs and 401ks to convince people to stop contributing or even cash out to increase tax revenues this year.
I’m going to raid one of my accounts. The tax hit is meaningless. You pay income tax whenever you withdraw. The only added expense is the 10% hit.
“Other than no longer contributing, how to get one’s own money without leaving the employer?”
If you want half of it... you can have it. Close the account, take an early pay out.
10% off the top pentalty, then the rest is taxed as income.
You’re better not messing with it, and hoping the government doesn’t pull a fast one.
I will also add that the first congresscritter that votes to take my retirement funds will be deemed enemy of my state. So far, we have allowed the looting to be done throught the tax system, by professional crooks, but this would be a line that would trigger the go signal IMHO.
Would it be legal to quit the job for a few days, quickly roll the 401K over into an IRA, then get rehired (which I could do and I know I would be rehired), and cash out of the IRA?
These radical statists really believe that your money is their money
bingo...we have a winner...
GOVERNMENT loves a fearful 401 K weiner...who pays a huge tax grabbing their money out...and even loves it more when people don’t shelter their income PRE-TAX by not contributing to a 401K!
In CA with the Federal income tax at 35%, State at 11%, and 10% penalty means that 100K in withdrawl, for an already working couple, ends up being...45K. I belive serfs would rise up against their lords when the King took 1 out of every 2 livestock. This is worse.
[ The seriously dangerous and wounded animal we know as government is fighting for its survival. ]
AND its vampirous parasite the democrat party..
as well as, big government republicans most blacks and jews..
Oh! and literally all progressives.. and globalists..
with most being cross pollinated..
It’s been proposed by lefties to sieze private pension accounts in return for SS-type checks to their victims.
I took the hit and cleaned out a couple. That cash is mine, not theirs.
Like the thing says. No matter what you do inflation will eat up your savings.
It’s coming.
I always wondered, what good is it, if the government taxes the future withdrawals, at say, 70%?
That’s true. My point is that no matter when you withdraw, early or not, you pay all those income taxes on it. The only ADDED expense to early withdrawal of 401K is the 10% penalty.
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