[apillar]

I've said it before and I'll say it again. If there was even the slightest chance of this becoming law, you would see a stock market crash that would make “the great crash” look like a mild downturn as hordes of people cashed out their 401-K’s and IRA. It would be far better to take the early withdrawal tax hit and salvage something than lose control of all of it to the government. That's why if this ever happens it will be a slow “frog in boiling water” process, where the feds assume a little more control of private retirement accounts over the course of many years, until you literally can't withdrawal it without their permission. That's when they'll drop the hammer.

[Alberta's Child]

I've said it before and I'll say it again. If there was even the slightest chance of this becoming law, you would see a stock market crash that would make “the great crash” look like a mild downturn as hordes of people cashed out their 401-K’s and IRA. It would be far better to take the early withdrawal tax hit and salvage something than lose control of all of it to the government.

If anyone really believes that confiscation and/or a stock market crash that eradicates a huge portion of their 401(k) account is a real possibility, then it would NOT be a good idea to cash anything out and pay the taxes and early withdrawal penalties on the money.

A better approach might be to borrow against your 401(k) plan -- and then simply default on the loan. These plans typically allow you to borrow up to 50% of your account, and the remaining 50% is basically used as "collateral" to pay taxes, penalties, etc. in the event you default on the loan.

Suppose you have $100,000 in your 401(k) account and you borrow $50,000 of it. If the stock market plummets for any of the reasons you mentioned and your remaining 401(k) funds lose half their value shortly thereafter, then the company managing your 401(k) plan basically has only $25,000 to use as "collateral" against your $50,000 loan. I haven't thought this all the way through, but in this scenario you may come out way ahead if you simply default on the loan and leave the $25,000 to Uncle Sam.

[ridesthemiles]

If there was even the slightest chance of this becoming law, you would see a stock market crash that would make “the great crash” look like a mild downturn as hordes of people cashed out their 401-K’s and IRA. It would be far better to take the early withdrawal tax hit and salvage something than lose control of all of it to the government. “”””

I have said the same thing for 3 years.

There will be no “WARNING” over this action.

What you are reading here on FR is about the most “warning’ you will see.

This action of seizing the private retirement accounts will be done electronically over a weekend. You will wake up on Mon AM & find your money gone.

Removing this money from the banks & investment houses would take the stock market as low as $300 instead of what it is running as of now, IMO.

Such actions would destroy the stock values of American companies & further tank the economy.

It would also destroy more banks, as that kind of massive withdrawal out of the banks accounts would make them technically insolvent. Ripe for closure-—thru no fault of their own.

Nancy Pelosi has also already discussed taxing every one of these accounts on the MAXIMUM they ONCE HELD before the stock market meltdown.

That would be taxing you on “PHANTOM INCOME”. Pure & Simple.

I never entered into any such accounts. I always felt that “What Congress Giveth, Congress Can Taketh Away”.

With NObama at the helm, they have absolutely no brakes on their actions.
None at all.