Posted on 10/09/2008 6:13:51 AM PDT by rellimpank
A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans.
Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans.
This was suggested by the chairman of the House Committee on Education and Labor.
“With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market,” Rep. George Miller, D-Calif., said.
(Excerpt) Read more at investmentnews.com ...
Bump-o-matic...
let us put THAT money in bonds
Dude, it already is. They’ve already bought Treasury bonds with the yearly surplus. Congress has spend every dime in the “Trust Fund”. All that’s there is worthless IOUs.
"Okay? OKAY!"
Heard a colorado congressmen (D) say years ago that they are subsidizing your emplorer paid health because they don’t tax it. They are planning on taxing the gains in your 401k.
Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans.
401Ks are the biggest cash cow just sitting out there. Of course those a$$hats are going to try and steal from the till. These legislators are no better than petty thieves when it comes to the sanctity of your property.
well, they tax the gains as income when you take out money.
Plus you don’t get to declare losses and you don’t get advantage of lower cap gains. But I guess you do have the advantage of a lower tax rate in retirement.
what the govt is saying is that they are “giving us” something with a tax deduct and that we are too dumb to deal with our portfolios. So the gov should manage them.
I guess if they end up with all the banks and financial services and health care,,they can invest our money in their stock.
I mean ourselves...give me my 6% that now goes to SS tax and let me put it in a bond myself.
If they tax it now, then you’ll be paying at a higher rate.
29% for me, but that was updated on Tuesday morning, so I’m probably pretty close to 35% now.
I’m mad as hell, and there ain’t a damn thing I can do about it! It’s like every thing I’ve put into that 401k for the last two years just vanished. I’m more mad than I’ve ever been against the dems in my whole life. They have literally stolen my life savings...
They are planning on taking your 401k, and giving you an IOU called a T-bill, then won't let you cash that bill in until you reach 70. Then they will only give you a "supplement" to you SS check until you die, at which time the leftovers will be confiscated by the government, not your family...................
One of my coworkers was planning on retiring next spring, but now he is seriously reconsidering this, as his nest egg has imploded from $900,000 to $620,000 in less than one month.
Is he a liberal or a conservative?.............
Craig is fairly conservative, although he does admit to voting for Clinton once.
Well, whether he’s lib or not, try and explain to him how Barney Frank and Chris Dodd forced Fannie Mae and Freddie Mac to go under while using them as their personal piggy banks for campaign contributions. Their despicable actions have brought the whole world’s financial structure to its knees. Obama is up to this to his ears, as he was a the largest recipient of campaign contributions from both. They are solely responsible for this, and McCain should be all over this on the campaign trail................I cannot figure out why he isn’t, unless he’s waiting to see the whites of their eyes to unload................
Two words
Atlas shrugged
My husband and eye are part of the “evil rich” Just barely above the income level designated by the left. Got there with hard work, 7 yrs of post grad schooling, many school loans and laughable income as a resident working 100 hrs per week. Still work nights, holidays, miss uncounted kids activities. Now govt feels it is entitled to more of the sweat of my brow to benefit those who will not work.
My husband and I are not the only ones ready to walk away, sell the house, take what little cash would be left after cashing out of the 401k/pension and heading for the hills to live a simple life. Then where will all the losers living off us be???? Not my problem.
He and another coworker, Richard, have been going round and round in the breakroom probably twice a week for the past month about this, and Craig constantly hands Richard his head. I mean, he just tears the poor guy up one side and down the other. But Richard foolishly keeps coming back for more.
Take it easy. You haven’t lost anything until you sell. The markets should be back in a couple of years, if they are not we have bigger problems than 401ks to worry about. Meanwhile dont look at your statements (saves a lot of ulcers)
I retired from a Fortune 500 company at the end of 1990 after 16 years, dating back past the introduction of 401K. Each year I signed up for the maximum contribution (there were no matching funds from the company). Each year around the end of May, I would receive a memo stating that my 401K contribution must be reduced to some lower set maximum. The explanation given was that, supposedly, it was "not fair" for higher salaried people like myself to get full advantage of projected 401K savings. Of course I had a very limited number of years to build a 401K account compared to the younger employees. Never did understand that.
I retired at 62 when the company changed the retirement benefits to make them greatly in favor of those younger folks. I've now been retired and drawing my company pension longer than I worked there. I'm sure they never expected that.
Can they take you investment or only the gain?
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