Skip to comments.Congress mulls major 401(k) changes
Posted on 10/09/2008 6:13:51 AM PDT by rellimpank
A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans.
Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans.
This was suggested by the chairman of the House Committee on Education and Labor.
With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market, Rep. George Miller, D-Calif., said.
(Excerpt) Read more at investmentnews.com ...
They already did! Mine’s down by 35%!................
Hold on to your wallets. These people are going to try and squeeze every possible dime out us to pay for their massive expansion of government that they want. When will they take away the tax benefits of the the Roth IRA? I predict that is next.
401(k) is a hoax. Congress will find a way to steal it.
Yep. I knew if I spent my Friday nights in the science library and then worked hard and saved my money for retirement, they’d eventually get around to taking it from me and giving it to the lazy and unproductive.
I should have put it under the mattress.
Or just spent it all without a care in the world and wait for the government to take it from people like me.
That's when I start buying ordnance. In bulk.
Where does stupid end and evil begin?
(that’s a low hanging pitch you may now knock out of the park)
“Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds, suggested Teresa Ghilarducci, an economics professor at The New School for Social Research in New York.”
I’m from the government and I’m here to help.
Maybe if we had decent interest on savings that would help. I’m not putting money I earned into the governments hands willingly. Of course, we may not have a choice.
YES, I'M SHOUTING. A NEW BUMPER STICKER:
|I WANT CHANGE!
Yes, I just finished spending mine (and paid the taxes) two months ago.
NO WAY you are going to get to keep that money.
They really are encouraging a coup on Capital Hill, aren’t they?
Here it comes! If Obama gets in there will be wholesale, unbridled money grab by the democrat congress. The biggest pool of wealth available to rob is retirement accounts. It’s also convenient that much of that is owned by the evil rich. Thus, there will be no guilt attaching to its seizure.
Remember, the Klintoons considered just outright taking of all IRA’s and 401ks at one point and rolling them into SS.........but they thought it was too “radical”...........
Wow- the gubmint that set up the 401K investment system is NOW going to “allow” us to trade in our 401K’s for gubmint bonds - backed by the full faith and credit of the US gubmint! Will those new bonds have Hank Paulsen’s picture on them???
Where can I sign up???!!! sarc
This news is really going to boost investor confidence in our financial institions and markets, i’nt it?
(any chance the “lemon law” can be used to turn in our Congress and get a better model?)
When do we get to start tarring and feathering the rat bastards again?
Looks like the democrats are starting to implement Obama’s socialist gameplan. Watch out for your 401ks, people. They will try to take them from you, in the interest of “fairness”. This could be the start of a real war.
It’s almost time for the revolution.
Congress is a bunch of lying theives.
We need to vote all Rats out of office.
Play with 401 K’s and the Market will really melt down.
I know know that the democrats want a complete collapse of the US economy.
I knew those damn things weren’t safe. I pulled mine out to pay some taxes, and every bit of profit I had made on it went to IRS and then the rest went to pay capital gains taxes my accountant had not calculated. Left me with nearly nothing in IRA’s so now I just keep everything in money market.
congress kin shore get a lot dun wit a lame duck who now has as much power as this cat on my lap...’member slick Willy in 2000?
I mean 401k. Not IRA. See what paying taxes does to your mind. You get so made you become inarticulate.
The revolution starts January 20, 2009.
Right now, there’s a high income test for 401Ks: that is, if your company doesn’t have many lower wage/salary people in the 401K, then the higher income people cannot contribute the full amount. This is to encourage companies to set up matching. Now, if we don’t let high income people (aka. the management) put money into 401Ks, that’ll kill the entire concept. If this goes through, no more 401Ks.
Jeez Louise! I already have part of my retirement tied up in government bonds. It's called the Social Security Trust (sic) Fund and the gubermint has no way to make good on those bonds. None. The tax rate in a few decades will be impossible. Our grandchildren will have to exterminate us for their own safety.
If Congress was required to follow the same accounting rules as industry, they'd be in forced bankruptcy right now. And now some nimrod "economist" wants me to put the WHOLE THING in the government's hands??? Excrement NO! The 401K / IRA is the ONLY thing we have left to diversify our nest egg.
Where does stupid end and evil begin?
When the government calls not collecting $80 billion spending $80 billion.
In real speak they are saying that the $80 billion was really theirs but that they have “spent” it by letting you keep it!!
We have crossed the line into socialism probably never to return in our lifetime.
Maybe socialism is too mild a word.
Weve invested $80 billion into subsidizing this activity,
translation: retirement planing is going to go outside of 401k’s.
congress is stuck on stupid.
Some time back both Hillary and Obama were pushing a “One Time Tax” on retirement accounts. The plan was to take 10% of the value of your retirement account to “Reduce the Deficit”. Of course they screwed themselves on this with their “Don’t ask don’t tell mortgages” since my account is down like 50%.
Stopped putting money in one years ago, and bought RE instead.
Looks like it. Are you ready?
Ah yes, they'll 'let' us trade all that cash for a pile of FedGov paper.
That's when I start buying ordnance. In bulk.
Better get busy.
Hey, let's take a look at the Faculty and Staff of the New School for Social Research, shall we?
Abzug, Rikki.............229-5400 x1414 Asst. Professor, Nonprofit Mgmt. Prog.,
Don't you wonder if she's any relation to that old Commie Bella Abzug? I'll bet you a buck she is.
Let's take a look at their "About" page and see what it says:
"The interdisciplinary education offered by The New School for Social Research today explores and promotes global peace and justice as more than theoretical ideals.
Wow. "Global peace and justice". That just about screams "LEFT WING" now doesn't it.
You know Sam, I thought that I had enough ammo, but now I see I was wrong.
Those S O effing B’s!!!
I’ll take all of mine out now and take the 20% hit if they try that. Or will they tamper with Roth, too. And they wonder why people have money in offshore account.
Seeing red big time!
Every other kook organization has done it and it works for them.
The squeaky wheel. They know no one will do this as we are all to busy WORKING, to keep up with their CRIMES.
Michelle O said last night that they don't just want to win, they want to "change democracy"
This is why it’s a bad idea to privatize Social Security, IMO. A huge entitlement program is bad enough, but at least there are some protections for us, because it is a program. But with our private money sitting in accounts, being handled by investment and financial firms who are making campaign contributions, and with the ability for them to be mishandled AND taxed, I fear that sort of thing even more.
I think that whatever happens, though, I will be grandfathered in, since I’m within 10 years of retirement. I hope.
I still got tubs of Beanie Babies.........
You should have been lazy and unproductive in the first place, and bought a bigger house :)
Replacing the existing tax system with the FairTax is a good place to start. See Hometown America Must Save the Nation for a good place to start.
Next, Real Estate taxes to double, failure to pay = government confiscation.
I get it. If you don't tax or reduce taxes, it's subsidizing??
This bailout scheme has released full fledged socialism.
Why do people need a 401k when they have Socialist Security? It provideds the goverment everything it needs for Democrats. It forces at gunpoint, workers to pay huge sums of their hard-earned money plus an equal amount is taken from their employers throughout life. Should the worker die before retirement age, Democrats win. Should the worker not die and receives the minimal payouts, the worker lives in poverty and the Democrat wins.
Double Bind: Savers on the Hook for Squanderers
“If lots of people don’t save and end up upon retirement being poorer than they would like to be, there will certainly be pressure to impose taxes on working people to more richly fund the retirements of individuals who have not saved,” he says. “You’ll see political pressure for wealth transfer — and if you have saved responsibly, you’ll be paying for people who have not.”
Wilcox argues that savers who are dutifully contributing to their 401(k) plans face a real risk, because they won’t pay taxes on the money until they retire. “It’s easy for me to imagine 10 years from now a political candidate saying, We have all these people with $3 million in their 401(k) plans and we need to impose taxes on those people and shore up Social Security for people who didn’t have access to these 401(k)s,’” he says. “It’s a big fat target for politicians.” (And another disincentive to saving.)
Wanna have our retirement in govermnent bonds?
Fine - reform social security, let us put THAT money in bonds...leave our 401’s alone.
You know how the Lee-Custis Estate became Arlington Cemetery? The union passed a law saying Bobby Lee had to pay his RE taxes in person, and when he mailed in a check instead, they siezed his house.