Posted on 04/23/2012 4:52:06 PM PDT by Kaslin
Duplicity: More than 30 years ago, lawmakers made a deal with Americans: Set up a retirement nest egg and we'll let you fill it with tax-free money. A financially troubled Washington now plans to break its word.
Nothing brought ordinary Americans into the world of investing like 401(k)s. Named after a subsection of the Internal Revenue Code, these retirement savings accounts have become a wildly popular alternative to traditional employer pensions, and are today owned by a sizeable majority of Americans at or near retirement.
Through 401(k)s, an employee — not the company he or she works for — decides just how aggressive or cautious he wants to be with money set aside for the autumnal years. Employers usually offer a series of stock, bond and money market investment funds, allowing a worker to choose and mix as he or she likes.
Not only would Americans see their own retirement accounts grow as the years passed, but they could rest easy knowing that the interest earned in their 401(k) won't be taxed before withdrawal at retirement time — or, in the case of the after-tax dollars in a Roth 401(k), that their money can be withdrawn tax-free.
But it's not the '80s anymore. It's 2012 and there are trillion-dollar-plus deficits to deal with, more than $15.6 trillion in outstanding government debt, and total U.S. unfunded liabilities of more than $65 trillion. Time for politicians to start looking for new sources of revenue.
No one should be surprised that Uncle Sam's wandering eye has noticed the $18 trillion in 401(k) accounts and other middle-class tax breaks, as the New York Post alerted its readers to over the weekend.
(Excerpt) Read more at news.investors.com ...
gosh who could have seen that coming...!
So, I and millions of others will no longer place a portion of our income in IRA.s or 401K’s, and will rush to withdraw what we have there as quickly as possible. That should work out GREAT for the market...... / sarc
So, I and millions of others will no longer place a portion of our income in IRA.s or 401K’s, and will rush to withdraw what we have there as quickly as possible. That should work out GREAT for the market...... / sarc
I’m glad I’m an old fart but I fear for my grandchildren. Maybe I can figure out a way to leave them something without the damn Democrats getting their filthy paws on it.
Actually 401Ks are probably fuelling the stock market bubble. Maybe it’s not such a bad thing to pop it after all. :P
They should do this right after they slash all government pensions ( except for military). / sarc
If this happens, a lot of people may pull their money out of their retirement plans. How will that effect the economy and tax receipts?
In all seriousness for someone in an office type situation working to 70 may be an option, but for those of us who work in construction, retail , food service etc working into a ripe old age may not be an option.
Sadly, military pensions are the first ones they'll slash. Why? Simple, the military isn't unionized and they don't (as a rule) vote Democrat.
The day they try to pull this is the day Lurker becomes a very, very dangerous man to certain people.
There is always the good old banking action, i.e., put it in the mattress.
Before people rush to say that people will withdraw their 401k’s and tank the market, 401k withdrawals are taxed already and withdrawing now would be pointless. Eliminating the 401k deduction would be negative for certain market segments but might be positive for others. For example royalty trusts would become a royal pain outside of an IRA or 401k and lead to complicated and increased taxes. But people might still be inclined to invest in yield or growth stocks if there is still a somewhat favorable tax treatment.
Pulling their money out of 401k accounts is EXACTLY what the IRS wants. That way the Feds can collect those juicy taxes PLUS 10% penalty!! Anyway you slice it the taxpayer gets screwed.
Pulling their money out of 401k accounts is EXACTLY what the IRS wants. That way the Feds can collect those juicy taxes PLUS 10% penalty!! Anyway you slice it the taxpayer gets screwed.
Pulling their money out of 401k accounts is EXACTLY what the IRS wants. That way the Feds can collect those juicy taxes PLUS 10% penalty!! Anyway you slice it the taxpayer gets screwed.
Sorry for the multiple posts, I don’t know what happened.
Totalitarians have many tactics. Plunder and death are their stock and trade. Witness history and current events.
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