Posted on 04/13/2013 11:07:25 AM PDT by yoe
As the April 15 filing deadline looms, it looks like some tax-protected retirement-savings vehicles might not be so protected after all.
President Barack Obama's budget for fiscal year 2014, released Wednesday, is loaded with an unusually large number of carrots—and sticks—for U.S. workers' retirement savings.
The idea getting the most attention among retirement-industry leaders so far is a lifetime cap on savings in individual retirement accounts and other tax-deferred retirement-savings vehicles, including 401(k) plans and corporate profit-sharing plans.
[snip] A saver's total balance across such accounts would be limited to the amount needed by a 62-year-old to buy an annuity generating an annual payment of $205,000.
[snip] The repercussions could be significant. U.S. corporations have been largely phasing out traditional pensions and replacing them with 401(k) plans, on which many higher-income workers plan to rely for retirement income. Meanwhile, two out of five U.S. households hold IRAs.
Financial advisers already are starting to warn clients they might need to rethink their savings and estate-planning
(Excerpt) Read more at online.wsj.com ...
“Wake the hell up America!!”
Lord, I have been saying that for years to people that would listen , and even some that wouldn’t. I constantly tried to tell people I worked with that they were losing their freedoms but they were more interested in when the next Twilight movie was being released. My children referred to me as “Crazy Lady”.
Last week I was ranting to my daughter about gun control being the first step in a slippery slope. Finally, at age 35, she understood what I had been trying to warn her about.
So my advice is just keep trying to get the word out about this administation to everyone you know. Keep the faith.
“ I get knocked down but I get up again. Nothings going to keep me down.”
So, if I can put $500 into a tax deferred account then the rules change and it’s capped at $400, wouldn’t I only put $400 into the next one?
I admit I’m not an economic genius.
Of course. Anybody who thinks that these bastards will not take hard-earned savings from honest people and give them to indolent slobs who vote democrat is a fool.
They think that NO ONE should receive more than 200 thousand a year. The rest should go to the government.
Except that the ruling elite will get more than 200 thousand. The ruling elite will get as much as they want while they look down their noses at the hard-working people.
It will be called a “tax” or be hidden in some complex formula that the average TV watching jerk will not be able to understand.
Mrs. abb and I do the tax deferred, and not the Roth. And we never will do the Roth. The only people who do Roth's think the government will honor their promise NOT to tax the distributions.
I suggest such people are either naive or stupid.
A CPA once told me why one should take the deferral today, rather than in the future. He said tax law changes every day, and what is untaxed today may not be in the future. The only thing that you can be sure of with respect to tax law is that it WILL change, he said.
I very much agree with that strategy.
I wish you and Mrs. Abb the best but do you think the government is not going to eventually tax all your money by 50 percent just federal. At least if you do a Roth the taxes have been paid. I think it is a bigger risk to tax defer.
Nope. A lot of people have traditional IRAs. It is incorrect to say “no one is doing the tax-deferred anymore”. That’s ridiculous.
Nobody young is taking a traditional anymore. It is a stupid thing to believe that you will pay less taxes 50 years from now then today. There is NO WAY that will happen. Best to pay your taxes today.
And you all who “paid your taxes already” are going to get taxed again when you withdraw it. Because you “have so much,” or some other similar argument.
I was just responding to your statement that “no one is doing the tax deferred anymore”. That is incorrect
I was just responding to your statement that “no one is doing the tax deferred anymore”. Maybe you meant fewer people are doing it or something but your statement was incorrect.
If it is as dreary as some here claim, I hope they do have those black pills to take. lol.
No black pills here. Just plain, old common sense and a historical knowledge of tax law, bookkeeping, money, finance, and how Marxists think.
Funny you should say that. I've always felt that the Roth IRA has a huge flaw: You're literally banking on Congress to maintain the current tax-exemption rules on Roth IRAs indefinitely. And as we all know, Congress can change the law at any time in the future.
At least with a traditional IRA you get the tax deduction up front. Would you rather have a tax deduction right now or a promise of tax-exempt withdrawals in the future?
All these socialist plans are a win-win for the communists. Either they impose the plan or they get people riled up. Not just conservatives are getting riled. A lot of the democrats (the ones who are employed and paying attention) are beginning to notice, too.
Eventually someone will go postal and that will be another “unwasted crisis” for the gun grabbers.
It won't stop when they draw their last breath, whatever is left of their inheritance will be confiscated as well.
“Will the Government Shrink Your IRA?”
I’m sorry, but I think they’ve done a fantastic job of that already!
They’ve thieving for decades through controlled inflation,when they do a Cyprus style theft there’s going to be lead in the air in this country.
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