Theresa Ghilarducci
Posted on 11/22/2012 1:13:55 AM PST by lowbridge
A recent hearing sponsored by the Treasury and Labor Departments marked the beginning of the Obama Administration’s effort to nationalize the nation’s pension system and to eliminate private retirement accounts including IRA’s and 401k plans, NSC is warning.
The hearing, held in the Labor Department’s main auditorium, was monitored by NSC staff and featured a line up of left-wing activists including one representative of the AFL-CIO who advocated for more government regulation over private retirement accounts and even the establishment of government-sponsored annuities that would take the place of 401k plans.
“This hearing was set up to explore why Americans are not saving as much for their retirement as they could,” explains National Seniors Council National Director Robert Crone, “However, it is clear that this is the first step towards a government takeover. It feels just like the beginning of the debate over health care and we all know how that ended up.”
A representative of the liberal Pension Rights Center, Rebecca Davis, testified that the government needs to get involved because 401k plans and IRAs are unfair to poor people. She demanded the Obama administration set up a “government-sponsored program administered by the PBGC (the governments’ Pension Benefit Guarantee Corporation).” She proclaimed that even “private annuities are problematic.”
Such “reforms” would effectively end private retirement accounts in America, Crone warns. “These people want the government to require that ultimately all Americans buy these government annuities instead of saving or investing on their own. The Government could then take these trillions of dollars and redistribute it through this new national retirement system.”
(Excerpt) Read more at theminorityreportblog.com ...
They will definitely nationalize private retirement funds; likely before his term is up. It is the only source and amount of private money that they can get their hands on that is even anywhere close to making a dent in their self-made national money problems AND continue to allow them to buy and keep votes.
There is no other source other than the toilet paper scrip their printing and the worthless T-bills they’re printing and buying up themselves with the scrip.
And don't forget to add that you are subject to an addtional 10% tax penalty if you withdraw before 59 1/2.
The chronically poor just need to learn to live with their self-inflicted “disease”.
Government is about power, and ultimately, power derived from the muzzle of a gun.
With a much more limited government, people would have to either do something useful to others to earn a living, or depend on the kindness of family and charities who can set practical limits and expectations on their support for the person.
The manipulations of the political class are predictable in both their motives and their methods. Our founders knew this, and knew what was ultimately necessary to rein them in.
This national retirement thing has been all over the net for the last few days and posted here at FR several times.
What all these postings have in common, regardless of the news source, is the same base article coming from National Seniors Council National that refers to: “A recent hearing sponsored by the Treasury and Labor Departments - - - -”. There is no link to the hearing transcript or date of the hearing.
Unless I’ve missed it, Fox never picked it up, Rush has not said a word, as this would certainly be a major news item likened to obamacare.
I have contacted the financial advisor managing my IRA, and her firm (a major one) has heard nothing. I contacted my GOP senator and have not heard back yet.
I believe this scheme to raid IRA’s is on the plate, but I also believe the National Seniors Council National is pushing it for some reason, maybe they have gold or silver sponsors trying to get people paranoid in order to cash in retirement plans and look for something more solid to get such as gold or silver. Or it could be a membership drive effort as they are sure getting attention.
What I do know for fact is I am not dumb enough to bail out of my IRA and take a huge tax hit without verification from a competent source.
If anyone can find a recent source of this information not tied to the National Seniors Council National, please advise.
Boiling frog theory.
And because they can’t hid behind “fair share” and “helping your fellow man” if they confiscate everything at once. Just as we saw in Atlas Shrugged, they don’t want what they’re doing to be seen and called what it actually is.
Think there will be any pushback from Congress?
If not, will 2014 be a bloodbath election again?
Boiled Frog syndrome.
You won’t notice until too late if done gradually.
Plus, nobody will care if it isn’t reported. So don’t look for this proposal to be anywhere near network TV.
As people prepare for retirement, and we attempt to avoid pitfalls that could jeopardize our retirement nest egg, this possibility should have been in people’s minds, ever since they requested public comments on the issue about 4 years ago. To not have been preparing for this eventuality is sheer foolishness. They won’t be able to keep their hands off the estimated 5 trillion in retirement accounts once things begin to really get tough for them with their dollars becoming ever more worthless. Our 401’s are like crack to crack addicts (politicians). My advice is to withdraw as much as you can take the tax hit on (you will have to pay the tax hit eventually) but look at the ways you can avoid the 10% hit, and use the loopholes to get your cash. Personally, given how they are debasing our money, it makes no sense to have anything denominated in dollars. Physical gold, silver, and even lead are good investments. One can even put their money to work in the futures markets and make the tax money back in no time, particularly if you leverage it, and have a niche knowledge of certain parts of the markets. You don’t have to know how everything in the market works, just certain segments and you can swim with the big fish. Just don’t be one of those who are crying after the government seizes your 401, because its coming sure as the sun rises.
IIRC, penalty for early withdrawal is 40%,not 10%.
When did the hearing happen? Anyone?
I’ve seen this posted again and again and I thought the original meeting took place in 2007 or 2008. Is it a new meeting, are we rehashing a 3 or 4 year old story, because it get’s the hits?
Frantic hand wringing?
Theresa Ghilarducci
You think? (i.e, 10-20%)
Tax Penalty for Early Distribution of Retirement Funds
Ten Percent Penalty for Early Distributions from a Retirement Account
By William Perez, About.com Guide
. See More About: retirement distributions iras
Updated November 04, 2008 Distributions from an IRA, 401(k) or other retirement plan generally must be included as part of your taxable income. Also, withdrawals from a retirement account may be subject to an additional tax of 10% if the distribution is made before you reach age 59.5 years old.
10% Penalty from Early Distributions from a Retirement Plan If you withdraw money from a qualified retirement plan, you may be subject to an additional tax of 10%. This is penalty for taking an early distribution from an individual retirement account (IRA), 401(k), 403(b), or other qualified retirement plan before reaching age 59 1/2. There are exceptions to this 10% penalty. A little known fact is this penalty may apply to Roth IRAs, even if it has been at least five years since you first opened up your Roth account. For Roth IRA account holders, it will be crucially important to review the exceptions to the 10% penalty, as otherwise the Roth distribution could become subject to both tax and the 10% penalty.
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