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?
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.
These radical statists really believe that your money is their money
[ 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..
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.
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.
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.
They nab my 401k and I’ll consider it a green light for SHTF time.
This has to be the 50th time in the last three years this sort of thing has been posted.
The incestuous relationship among the Treasury, the Fed, and the big brokerage houses makes me think this ain’t gonna happen. They want your money in their coffers, not siphoned off into some bogus government “bond” or p*ssed down a hole by congress and the resident.
If I were the government, and I were financially desperate, I’d practice financial repression:
* I wouldn’t “raid” the accounts, but I’d tax the hell out of any withdrawals (first)
* I’d revoke the Roth account tax exemption, slowly at first. There’s no point in attacking them until they build up a big kitty. Then I’d start in with the minimum distribution penalties, and I’d add on death/inheritance penalties.
* After a while, I’d realize that the real money is in personal non-retirement accounts. How come France has a wealth tax and the US doesn’t? Why should the burden of supporting our society fall only on income and sales taxes, which don’t affect those who have accumulated wealth. Wealth tax proposals are a-comin’!
* I’d also augment restrictions on the trasferring of wealth outside of the country. Some sort of “ex-patriation” tax would be levied on offshore transfers.
I could go on, but you get the idea... the IRA is the least of our worries.
Any politician backing this should be targeted for selective elimination.........
Some info HERE.
Act like the government, borrow as much as you can and pay back later. If they seize your account, all they'll get is an IOU (kinda like Social Security).
Although Democrats have proposed laws to essentially nationalize IRA savings, these proposals have never moved forward even in the days of strong rat control. Democrats do not have pass any legislation to confiscate IRAs. They will let unsustainable spending crash the dollar and most savings. They can also increase future tax rates to confiscate excess withdrawals.