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 ...
Of course they are going to try to change 401k policies. “Change” is political jargon for “raid and take”. They smell money and we all know there is nothing as dangerous as a politician with dollar signs in his eyes.
“but at least there are some protections for us, because it is a program”
What protection? If Congress will loot your money they will loot ALL your money. Social Security is a joke and they can cut benefits even further at any time.
Unfrigg’n believable!!!
1. The “Government” invested in my 401K
2. By not extorting additional money from me
3. After completely screwing me out of my SS
4. They are going to issue “government bonds”
I guess these are coming out of that SS “lockbox”...
Soc Sec is under water. Freddie/Fannie have tanked. Medicare is inefficient. Do we really want the gov't to be involved in people private retirement savings?
Yeah, but it felt good at the time!
No, I don’t. Note I didn’t say they can’t do this, only that it’s insane and unwise.
here is a little tidbit for you...every year the house has to authorize payment of social security benefits, and the senate has to appove it also....so, in essence, 500 or so people can deny social security to the people at any time.....contrary to popular belief, social security is paid out of the general fund, and as such subject to approval every year...
I knew all that already. Most people think SS is some kind of “super fund” that cannot be altered and must be paid. It is nothing but a 15% direct income tax with welfare paid out in small amounts each year.
Yep, it's time. A '10 Million Pissed Off Men March' might get just a little attention.
Thanks for the link to the excellent article.
This current mess reminds me of watching some high school classmates
going off to college with good-sized student grants (NOT student loans).
Somehow their families simply spent so much on nice cars and other
luxuries, that went it came time to reveal their finances on student
aid forms...they looked poor.
In contrast my beloved (naive?) parents and those of other classmates
scrimped, saved and looked “rich” by comparison. Thus our frugality
was rewarded with student loans. Not grants.
This was back in The Stone Age (the 1970s). Knowing human nature,
I won’t be shocked if the situation is about the same these days.
i tried to explain to my mother in law that the “trust fund” does not exist, and that the “lock box” is filled with IOU’s anyway...man you just cannot get an old lib to listen or accept anything but the dem party line...
That would do it, and add a few Sara Palin’s in that march. Now who is going to organize this?
By the closing bell today, mine should be right at 50% of its value from January 1st, 2008.
The thing is, if you don't want to pay the huge penalty, where do you roll it over to? A Roth? Sucker bet since those are next. Roth's will be safe for about another year.
I predict that they will impose special "surcharges" on withdrawals from any sort of retirement plan. Now, when they start attacking Health Savings Accounts and Flexible Spending Accounts (!!!), you know that we are going to hell in a handbasket for sure.
YES it is.
Clinton passed an ex post facto tax increase, and the USSC upheld it.
We had a harsh reality that if you make an AGI over 150k you are a target not 250k. U start losing deductions and you move to the 35% bracket. Watch out they will get your 401k if you make over 150k and throw it in the SS trough.
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Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans. Folks, the government is not only changing the rules in the middle of the game, thereby introducing all sorts of systemic risk into the system and scaring off capital, but it's executing power grab after power grab. Congress to taxpayers and citizens: bend over and grab your ankles! |
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