Skip to comments.Legislation May Restrict Investors’ Access to 401(k)s
Posted on 05/23/2011 11:06:49 AM PDT by John Semmens
Concerned that short term desires to put food on the table may interfere with the Governments ability to adequately control the nations resources, legislation that would limit people access to their 401(k) funds has been introduced in Congress.
A Bill titled the Savings Enhancement by Alleviating Leakage in 401(k)s Act, otherwise known as the SEAL Act, was jointly introduced by Senators Herb Kohl (D-Wis) and Mike Enzi (R-Wyo). The legislation aims to reduce the number of loans a person can take out using his 401(k) as security.
There is a risk that too many people will put personal needs ahead of the national interest, Kohl warned. The Government allowed 401(k)s in order to encourage workers to put aside money for the future. The notion that this is solely for the benefit of the individual is erroneous. The Government needs to be able to get its hands on this money in case of an emergency. It wont be able to do that if the funds are depleted by their nominal owners.
Despite high unemployment, the rate of premature withdrawals from 401(k)s in 2010 was only 7%, up from 5% in 2005. Kohl, however, did not find this small impact reassuring. What will happen when unemployment benefits expire and we still have nine or ten percent of the workforce without jobs? Kohl asked. Rather than see their families starve or get kicked out of their homes a lot more people will be tempted to tap into these savings. This is what the legislation is trying to prevent.
I find myself checking more and more if what I am reading is from a real news source or satire. Sad to say.
the important thing is that the gov’mint finds a way to spend it all on a good cause.
That’s a head shakin’, eye roller John.
Good satire that I’m afraid could become truth soon.
They know people are wising up to the thief and they do not want to give us a chance to use our wealth as we see fit...
I know this is a satire, but the concept makes me feel better about my husband’s liquidating his 401(k) from his previous employer, instead of rolling it over. Yes, he handed the Feds several hundred dollars as a gift, but they could have just stolen the whole thing before he retires, too.
I figure all our Federal taxes go to pay Anoreth’s salary, anyway.
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