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Legislation May Restrict Investors’ Access to 401(k)s
A Semi-News/Semi-Satire from AzConservative ^ | 21 May 2011 | John Semmens

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 Government’s ability to adequately control the nation’s 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 won’t 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.”

read more...

http://azconserv1.wordpress.com/2011/05/21/wrangling-over-the-war-powers-act/


TOPICS: Business/Economy; Government; Humor; Politics
KEYWORDS: investments; satire; savings; taxes

1 posted on 05/23/2011 11:06:56 AM PDT by John Semmens
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To: John Semmens
...and Mike Enzi (R-Wyo)...
2 posted on 05/23/2011 11:11:41 AM PDT by ComputerGuy (HM2/USN M/3/3 Marines RVN 66-67)
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To: John Semmens

I find myself checking more and more if what I am reading is from a real news source or satire. Sad to say.


3 posted on 05/23/2011 11:12:05 AM PDT by guardian_of_liberty (We must bind the Government with the Chains of the Constitution...)
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To: John Semmens

the important thing is that the gov’mint finds a way to spend it all on a good cause.


4 posted on 05/23/2011 11:17:13 AM PDT by campaignPete R-CT (Palin '12 begins in '11. In western New Hampshire pour moi.)
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To: John Semmens

That’s a head shakin’, eye roller John.


5 posted on 05/23/2011 11:25:58 AM PDT by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
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To: John Semmens

Good satire that I’m afraid could become truth soon.


6 posted on 05/23/2011 11:35:47 AM PDT by mnehring
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To: John Semmens

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...


7 posted on 05/23/2011 11:59:31 AM PDT by jafojeffsurf (Return to the Constitution.)
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To: John Semmens

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.


8 posted on 05/23/2011 12:12:05 PM PDT by Tax-chick (Just what this family needs: more smugness.)
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