Kiss Your Pension Fund Goodbye
Posted on 02/27/2016 1:15:20 PM PST by SkyPilot
According to financial research firm ICI, total retirement assets in the Land of the Free now exceed $23 trillion.
$7.3 trillion of that is held in Individual Retirement Accounts (IRAs).
That’s an appetizing figure, especially for a government that just passed $19 trillion in debt and is in pressing need of new funding sources.
Even when you account for all federal assets (like national parks and aircraft carriers), the government’s "net financial position" according to its own accounting is negative $17.7 trillion.
And that number doesn’t include unfunded Social Security entitlements, which the government estimates is another $42 trillion.
The US national debt has increased by roughly $1 trillion annually over the past several years.
The Federal Reserve has conjured an astonishing amount of money out of thin air in order to buy a big chunk of that debt.
But even the Fed has limitations. According to its own weekly financial statement, the Fed’s solvency is at precariously low levels (with a capital base of just 0.8% of assets).
And on a mark-to-market basis, the Fed is already insolvent. So it’s foolish to think they can continue to print money forever and bail out the government without consequence.
The Chinese (and other foreigners) own a big slice of US debt as well.
But it’s just as foolish to expect them to continue bailing out America, especially when they have such large economic problems at home.
US taxpayers own the largest share of the debt, mostly through various trust funds of Social Security and Medicare.
But again, given the $42 trillion funding gap in these programs, it’s mathematically impossible for Social Security to continue funding the national debt.
(Excerpt) Read more at sovereignman.com ...
At current interest rates.
No thanks.
They also seem to not be able to figure out that an Illegal Invader who has 25 "kids" is actually defrauding the government and us for EITC tax "credits" (read: welfare and fraud).
Yup.
Kiss Your Pension Fund Goodbye
You can’t borrow 100 % from your IRA. It used to be 50%. I assume it is still the same.
“what’s to keep them from reneging on the promise that we get it back in retirement???”
Get it back? What does that mean? It is your money, not the governments. you just haven’t paid taxes on it, but it is still yours.
The worst that can happen is for them to claim the taxes on it.
50%. That is why I like my self directed SOLO K because you can also self direct into real estate etc. Non-liquid assets.
They do. On top of the tax, you will pay interest and probably a failure to pay penalty. Because the offsetting reporting form is generally not issued by the firm that receives your rollover until the next year it might take 2 years, enough to really run up the interest. If it is large enough and you do not pay fast enough you risk a Lien on your property or business.
Roll it over to a Roth IRA or pay the tax upfront and be done with it.
Left out the government’s $7 trillion in agency debt.
Liability for tax.—
The employer shall be liable for the tax imposed by subsection (a).
(e)Employer requirements relating to MyRA accounts.—
(1)In general.—
An employer who pays wages to any employee through direct deposit shall make contributions through direct deposit to the MyRA account of the amount of wages designated by an employee who elects to participate in the MyRA program under section 3106(d) of title 31, United States Code.
Looks like a penalty if the employer deducts wages and does not forward the money to the MyRA account of the employee.
Not a "penalty to employers whose workers don’t have a retirement account", as claimed by the silly article.
If one has any decent amount of money in the plan, it makes no sense to cash out. Let say you have several hundred thousand and live in California. Your probably going to have to pay at least 33% fed tax and at least 10% state tax. If it is an early withdrawal add another 10%. Goodby retirement money...
The discussion was about the government looking at seizing 401k’s and 403b’s and some here said they were tempted to just take out themselves vs. letting government take it all.
Yes, it would be crazy, but, I’d take the money and do with it what I wanted vs. the government telling me how much of my money they will give me each month after they stole it.
If they can just seize your money, wouldn’t you think some cash strapped local and state government would have already have done so? They can tax the crap out of you, but can’t just seize it...
“Apparently the Obama administration has passed new regulations (on what authority I do not know)”
If they have done it then it is done on the same authority as a mugger who sticks a gun in your nose and takes your wallet. No other authority for such action exists and the government is being run by people who are no better, in fact worse, than street muggers. At least muggers don’t bother to pretend that they really have the law on their side.
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