401(k)s and Roth IRAs

[Valuist]

At what point does the deficit get so bad, and the government so greedy that they start coming after 401(k)s and Roth IRAs? 4 years? 10 years?

Not sure even they have the balls to try it, but if you think civil war couldn't happen again, you are naive. THIS could easily start one.

[FantasticDan]

Most informed people I know say it will happen shortly after Obama starts his 3rd term. :ThmbDown: :blush:

[Valuist]

Most informed people I know say it will happen shortly after Obama starts his 3rd term. :ThmbDown: :blush:

That's the first time the words "Obama" and "informed" have ever been in the same sentence.

[Marshall Bennett]

401K has been a bad deal for the average Joe from day one. What percentage of workers actually see it through till they reach 59.5 years of age? The penalty is 10% off the top for early withdraw, plus your typical federal income tax charges. Borrowing against it is also a sham. Company sponsored profit sharing programs were always the way to go and then this shit came along. No one should be surprised in today's wreck of an economy how many have either taken out their 401 entirely or borrowed from it quite liberally.

[badcompany]

What they'll probably try to make happen is to require anyone with an IRA or 401k to invest a percentage of it in Treasuries.

[kingfin66]

I think it is more likely that employer contributions to medical insurance benefits will get taxed. They are being reported on this year's W-2 forms for "informational purposes only."

[Robert Goren]

401K has been a bad deal for the average Joe from day one. What percentage of workers actually see it through till they reach 59.5 years of age? The penalty is 10% off the top for early withdraw, plus your typical federal income tax charges. Borrowing against it is also a sham. Company sponsored profit sharing programs were always the way to go and then this shit came along. No one should be surprised in today's wreck of an economy how many have either taken out their 401 entirely or borrowed from it quite liberally. 401Ks are actually pretty good deal for most people. It is certainly better than hoping your company's pension plan is still going be there when you retire. The age is 59.5 for the company that you are working for now. It is 55 for any former employers. There are cetain medical conditions that allow you to withdraw early without penalties as well. Taking money out early is almost always a bad idea. Some times though you have no choice.

[Mike at A+]

You can always roll it over if you change jobs. I think you have 30 days.

[elysiantraveller]

You can always roll it over if you change jobs. I think you have 30 days.

You can move it whenever you want so long as the roll is like to like. Companies may propose the 30 day window but I'm not sure why they would want to do that.

In any case a 401k is a great investment, especially if a match is available from the employer. It SHOULD NOT be ones only savings though.

[Robert Goren]

You can always roll it over if you change jobs. I think you have 30 days.Maybe, the rules for that depend on a lot of things. Generally you are better off keep the old 401K, if they let you and starting a new one with the new company. If not, you can move it into an IRA. I believe in having separate accounts. I just don't like having all my eggs in one basket if I don't have too.

[riskman]

What limits would you place on government? If the government can reach into your light sockets, your toilet, your refrigerator, your car, and your healthcare, and shoes and pants at an airport why shouldn’t it be able to reach into your 401k or IRA with some new revenue producing scheme. How many more new regulations, how many more new executive agencies, how much more is the government planning to intrude into our lives? The nanny state is chocking the private business sector and strangling the individual. Get the hell out of our lives!

[Charli125]

401Ks are actually pretty good deal for most people. It is certainly better than hoping your company's pension plan is still going be there when you retire. The age is 59.5 for the company that you are working for now. It is 55 for any former employers. There are cetain medical conditions that allow you to withdraw early without penalties as well. Taking money out early is almost always a bad idea. Some times though you have no choice.

Not to mention that pension plans aren't sustainable. They're a great idea at first, and then as you hire more, and people retire, they can no longer be funded.

401K's are fantastic, sustainable, and offer the company a chance to match contributions which is also sustainable.

[Tom]

You can always roll it over if you change jobs. I think you have 30 days.

Obama is already working on that angle - by destroyring all the jobs!

[Valuist]

Here's the latest tax grab: the snowbird tax. Have at it, Minnesotans.

http://online.wsj.com/article/SB10001424127887324329204578271720286958796.html?m od=WSJ_Opinion_AboveLEFTTop

[Tom]

http://dealbook.nytimes.com/2013/01/30/jesse-jackson-proposes-creation-of-a-new-lender/

At a three-day conference in New York that began on Wednesday, Mr. Jackson discussed a proposal for increasing the availability of capital by using pension money to make loans in low-income communities.

Reparations?
Re-distribution of wealth?

Put these on my tally, hcap.....:D


It's me,
C.P.

[JustRalph]

Here's the latest tax grab: the snowbird tax. Have at it, Minnesotans.

http://online.wsj.com/article/SB10001424127887324329204578271720286958796.html?m od=WSJ_Opinion_AboveLEFTTop

I've heard of this 3 times over the years, never seen it pass. They will spend more trying to enforce it, than they take in

[Jay Trotter]

I'm not understanding the "Snowbird Tax"?

Wouldn't the person from Minnesota be paying their taxes as a resident of Minnesota? And wouldn't it be the state of Arizona (for example where the Snowbird spends the winter) be the state that is actually getting a bit screwed by having the Snowbird as a resident for a number of months without getting any State income tax?

I seem to be reading that link backwords or something. Explainations.

[boxcar]

At what point does the deficit get so bad, and the government so greedy that they start coming after 401(k)s and Roth IRAs? 4 years? 10 years?

Not sure even they have the balls to try it, but if you think civil war couldn't happen again, you are naive. THIS could easily start one.

This has "secretly" been bandied about for a few years. It will eventually happen. The government will make slaves out of us. We'll exist for their benefit. Of course, they will insist they are working for ours. :rolleyes:

[badcompany]

This has "secretly" been bandied about for a few years. It will eventually happen. The government will make slaves out of us. We'll exist for their benefit. Of course, they will insist they are working for ours. :rolleyes:

Yes, there will be even more reminders about how we have roads.