I’ve often said to the wife that if they ever become serious about going after the 401K, I’d figure out how get it all now and pay one penalty, than for them to continuously raid it over time, or “nationalize” it.
Next up: Obama01k, you pay into it..
...and some non-citizen gets to enjoy it.
That penalty is 33 1/2 percent of the balance. Ouch.
But hey, something is better than nothing.
If they try to take my 401K, there will be blood.
“I’ve often said to the wife that if they ever become serious about going after the 401K, I’d figure out how get it all now and pay one penalty, than for them to continuously raid it over time, or “nationalize” it.”
You can buy rental property with the funds. The rent goes back into your 401k. It is unlikely they’ll take rental property as the liability is too high.
I’m already there and have already done that.
I’ve heard comments that the government would be fine with that, because you’re paying all these taxes on the withdrawal.
However, since the federal government is severely beholden to financial institutions, they aren’t going to nationalize several trillions in retirements accounts.
Instead, I think you’ll see mandates that for an account to be tax advantaged, several percent have to be invested in federal bonds to make up for market volatility.
The state then gets a chunk of that pie immediately, and it can ratchet up the mandatory percentage over time. And by having continued growth on the invested portion, there’s more money to draw upon over time.
Same here. I'd pay a 50% penalty, because I know that I would be getting less than 50 cents on the dollar back after our inept government starts administering it, and making income adjusted annunites.