Here’s why (and how) the government will ‘borrow’ your retirement savings

Sovereignman.com copied onto ZeroHedge ^ | February 15, 201616 copied by ZeroHedge on Feb 16 | Simon Black copied by Tyler Durden

[ChicagahAl]

...shift them to an annuity.

At current interest rates.

No thanks.

[SkyPilot]

I find it ironic how the IRS tracks this and knows every withdrawal however, they can’t seem to have a computer system that sends up a red flag when 1,000 tax refunds are sent to the same address, like here in Michigan few years ago.

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).

http://www.washingtonexaminer.com/report-massive-fraud-still-rampant-in-earned-income-tax-credit-program/article/2548376

[SkyPilot]

The bastards hate it when you work hard and save money so you won’t be a burden. They want it, to give it to lazy slobs who give them votes.

Yup.

[SkyPilot]

http://www.hangthebankers.com/government-preparing-to-seize-401k-retirement-plans/

"The case, Tibble vs Edison, has set the stage for what could be a very slippery slope – a slope on which the U.S. government could intervene whenever it believes a 401(k) is not adequately performing. It has many asking questions: If we have another stock market crash on par with 2008 (as some are predicting for this year) would the government step in when 401(k)’s suffer any kind of substantial loss? Might the government take control of those plans – of course, all in the name of “protecting consumers” – and in turn move the funds into Treasury securities? I know some of you are likely thinking, “That’s ludicrous, they would never do that!” But after reading what economist Martin Armstrong wrote in reaction to the Supreme Court ruling, in an article boldly titled “Kiss Your Pension Fund Goodbye”, you may think again.

Kiss Your Pension Fund Goodbye

[mfish13]

You can’t borrow 100 % from your IRA. It used to be 50%. I assume it is still the same.

[doldrumsforgop]

“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.

[GeaugaRepublican]

50%. That is why I like my self directed SOLO K because you can also self direct into real estate etc. Non-liquid assets.

[Pete from Shawnee Mission]

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.

[<1/1,000,000th%]

Left out the government’s $7 trillion in agency debt.

[Intolerant in NJ]

will "borrow"..."will"? - started twenty years ago in Jersey when Republican Christy Todd Whitman "borrowed" two billion from the state retirees' pension fund for use elsewhere in the budget - up until that time the fund had been solvent and self-supporting with what the state was contributing by law and what retirees were putting in - every governor since has also "borrowed" including Christie - none has paid any back including Christie - and the retirees get reamed for taking too much money from the state and for complaining that their retirement is being stolen - it has been happening, it is happening and it will continue to happen - maybe to you......

[Toddsterpatriot]

Thanks for the link.

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.

[utahagen]

Sigh...ok...thanks to you and other freepers for the advice.

[EVO X]

I am 56. I can retire and withdraw all of it and just owe the taxes, but no penalty. It’s all in 403B

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...

[Engedi]

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.

[EVO X]

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...

[RipSawyer]

“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.