I moved out of my 401K. My brother is an investment counselor. He warned me about this stuff a couple of decades ago. The only good thing about 401k’s is the employer’s matching funds. Once you can roll it over into something else, do it.
Done did.................
I have always feared that since your 401K is tax deferred and that not only have you not been taxed, it is money that you have not even got yet. It is just a number of a piece of paper, and not very liquid. Once Congress decides it needs a way to fund Social Security in the future as Baby Boomers move in the retired category, I always felt that they would Nationalize 401Ks and give me some bogus enhanced Social Security in exchange. Since many Americans may not even have a 401K of any size, this may not be hard to sell to voters.
Did you brother match the money you threw away for 20 years? Just wondering since I'm a Registered Rep/IA. I've never told anyone to not let their employer give them matching funds.
It takes a long time for legislation to make it through and if I saw 401k confiscation, we would PROBABLY be able to quit/rollover to IRA/or cash out as long as legislation isn't retroactive....and then there are the courts. You'd have a HUGE heads up.
The article has nothing to do with 401(k) plans other than the headline trying to scare people.
It talks about the risks of investing in public companies. What do roll your investments into that avoids these risks?
Is there a tax liability in doing that or is that only when you access the funds for withdrawal (presumably at retirement)?