[HDCochran]

I would really like informed answers.

[Krankor]

I read somewhere that the “unions” wanted your 401K. Not exactly sure what that means

[unkus]

ping

[austingirl]

Don’t worry about it - the dims will be coming to take the whole damn thing.

[Oldpuppymax]

Well here is one informed answer. Big labor wants Hussein and Co. to confiscate 401K’s, all for the “greater good”, of course. Your money will be used to fund the Marxist dreams of dear Leader. But don’t worry...you’ll be given T Bills to replace the missing money. Now don’t you feel better?

[mlocher]

The increase in capital gains tax will not impact your 401K, or your IRA, for that matter. All gains in these plans are taxed as earned income upon withdrawal. Personally, I am more concerned about an increase in the tax rate of earned income in the future. I am also more concerned about plans to have the government be in charge of 401K and IRA plans. These people are looking for cash to fund their experiment.

[outofstyle]

I would really like informed answers.

I don't believe there can be any informed answers. If all the current rules remain the same and Obocare is not repealed, then your 401k will be likely effected in three ways. It's value will not increase very much because of the long term economic trends. Your return will be further diminished because of the inevitable inflation that will come. And finally you will inevitably be taxed on your payouts at a higher rate than they otherwise would have been.

All that assumes no change to the 401k rules. However, I would not be surprised if the rules are changed. I think the government will be forced to apply some sort of additional capital gains assessment of these funds because they represent an irresistible source of revenue. I really believe we are all going to be screwed for being responsible and productive.

[R0CK3T]

Attempt to seize my property and I will stop you by ANY MEANS NECESSARY.

[Jagman]

First off, the 401K program will be renamed the 4Q program, which will systematically syphon off every penny of your money to provide sunglasses for polar bears. And if you complain, your friendly local totally overpaid government bureaucrat will reply, 4Q!

[aMorePerfectUnion]

Beware the greater threat - the federal government changing the law to roll all 401ks and Pensions into a national retirement plan. They are discussing this - just search FR for articles.

If they move in this direction, I will pay the penalties and withdraw my money to maintain control.

[farmguy]

Even if they don’t seize 401Ks and IRAs, they will for sure dilute their values with the printing press.

[Bronzy]

This is an interesting read from Neal Boortz:

http://boortz.com/nealz_nuze/2010/02/the-government-wants-your-reti.html

[Eva]

I read last week that they were going to tax savings, I’ve been trying to figure out what that meant, but I believe that means your 401K.

[richardtavor]

Eventually, they will go after our stocks and 401Ks. As the famous bank robber Willy Sutton said when asked why he robbed banks, he retorted, “because that is where the money is.” (I know he didn’t really say that, but the Libs have taken as their creed. We will be lucky to have anything left when these crooks are finished. Congress is like the Borg.

[Oceander]

Right now, your 401(k) is not subject to additional tax so long as you don't withdraw any amounts from it (other than as otherwise permitted). The fascists, I mean democrats, have not yet gotten around to destroying the treatment of 401(k)s and other tax-favored private retirement accounts. However, any permitted withdrawals you make, such as once you hit the age where you have to take mandatory withdrawals, the amounts withdrawn will be subject to the full income taxation as ordinary income. In particular, as of right now, those withdrawn amounts should constitute "wages" or "compensation for services" - which is why they're subject to tax as ordinary income and not as capital gain - and are therefore not so-called "unearned income," which means that they shouldn't be subject to the expanded payroll taxes in Obastardcare.

I wouldn't count on that state of affairs remaining. In particular, as another poster mentioned, the unions - which clearly have control over the democrats, as witness how the democrats turned on a dime to please their union bosses over the "cadillac tax" issue - have demanded that the democrats seize all private retirement arrangements - 401(k)s, IRAs, and the whole panoply of other arrangements - and put them all into a single federal pension plan.

The obvious reason for this is that the union bosses have always used union pension funds as their personal piggy-banks and have basically raided the pension funds of union members for their own corrupt benefit. In order to make up for the stolen funds, they want all retirement plans - union pension plans as well as 401(k)s - all put into a single pot of money so that, basically, your 401(k) would be used to make up for the money that the union bosses have been stealing from the union pension funds.

When this happens, you will get a chit - an IOU - for the funds that will be seized from your 401(k), which will ostensibly give you the right to receive benefits from this new federal pension fund once you retire. Of course, by the time you retire your money will have long since been used up paying benefits for union members who have already retired, and your IOU won't be worth the paper it's written on.

In other words, the unions are going to use the coercive power of the federal government to steal your 401(k) funds for their own private use.

Until and unless both the democrats are removed from power and the unions are put back in their proper place - that is, the NLRA is either repealed or substantially rewritten - I would not contribute any more amounts to a 401(k) were I you, and I would be working on making the largest permissible early withdrawals I could from any existing 401(k) or other retirement arrangement, such as an IRA, for things like educational expenses, purchasing a home, or the other permissible early withdrawal purposes.

[Jim Noble]

How will ObamaCare affect my 401k?

Your 401(k) is going to be confiscated, and replaced with "guaranteed" bonds.

[Daisyjane69]

http://market-ticker.denninger.net/archives/1830-401kIRA-Screw-Job-Coming.html

[CincyRichieRich]

Looks like a bunch of sarcasm here...I understand.

Seriously, though my opinion:

* taxation hurts corporations, small or large
* inflation raises prices, which are passed on to customers
* banks and other traditional DRIP or dividend issuing companies will be less likely to issue dividends or raise them and hold onto precious cash (Obama’s Goldman Sachs never issued divdidends, so no change to those limousine liberals)
* hard for companies to hire and expand, i.e., take chances and grow
* Obama’s Holder will challenge every acquisition calling it a monopoly, especially larger corporations

Bottom line, both 401ks and IRAs will be hurt by slower growth. Both are not safe from confiscation due to the need to redistribute our investments since we were so LUCKY to those less fortunate...it’s fair, you know.

Sorry, I dipped into sarcasm, too, so I’m a hypocrite. I feel better, though.

2010 and 2012 are the most important elections in the U.S. history...2008 election was to date, and we blew that. We can’t blow this one.