Posted on 07/13/2010 6:09:05 AM PDT by Second Amendment First
The White House and congressional Democrats, with the backing of the AARP, will soon put forth a plan to automatically enroll new private-sector employees in investment retirement accounts (IRAs).
The measure will apply to new workers at firms that don’t currently offer 401(k) retirement plans, according to AARP, the lobby group for seniors. Workers would have the choice of opting out of the accounts.
The Obama administration sees the auto-enrollment system as a way to increase savings.
“There’s this inertia that keeps people from taking advantage of saving opportunities,” said Cristina Martin Firvida, the director of economic security in AARP’s government relations department. “It’s all sort of foundationally related to that, how people choose to save.”
Top officials in the administration, including White House Budget Director Peter Orszag, Treasury Department senior adviser Mark Iwry and Cass Sunstein, the administrator of the White House Office of Information and Regulatory Affairs, have long championed the opt-out provision. They point to studies that show the arrangement leads to big increases in savings by workers.
Like other employer-based retirement accounts, the opt-out accounts proposed by Democrats would have tax benefits. It’s unclear whether they will be traditional tax-deferred accounts or Roth-style vehicles, in which account holders don’t pay taxes on withdrawals. Iwry, a retirement savings expert, has preferred Roth accounts in the past.
Obama himself has publicly called for people to do more saving for retirement.
“The fact is, even before this recession hit, the savings rate was essentially zero, while borrowing had risen and credit card debt had increased,” Obama said last September. “Half of America’s workforce doesn’t have access to a retirement plan at work. And fewer than 10 percent of those without workplace retirement plans have one of their own.”
Rep. Richard Neal (D-Mass.) and Sen. Jeff Bingaman (D-N.M.) have introduced similar IRA proposals in the past.
The auto-enrollment provision will get pushback from small-business groups.
“It’s another burden placed on business that’s coming from Washington, keeping business owners from hiring and investing,” said Bill Rys, the tax counsel for the National Federation of Independent Business. “They’re being told, ‘Here’s how you run your business.’ ”
Source: http://thehill.com/homenews/administration/108319-dems-aarp-want-to-make-ira-enrollment-automatic
yup and we dont stand a chance against them ...the party of NO doesnt know the meaning of the word...
more control
Of course, the left conveniently misses the easiest way to encourage savings. QUIT TAXING INCOME!
Obama and the AARP actually see this as a new source of funds that will be seized, as will all existing 401K and IRA funds in the near future under the guise of Guaranteed Retirement Accounts (just more cash for the government to amass more power.)
I “opted out” of AARP in the early ‘90s when they were pushing “Hillary care.” I’ve never regretted my departure from that malignant organization.
If the AARP is for it, I am against it.
What they supposed to do, blow themselves up???
All true.
Stop, just stop, enough, really I’m not sure anymore I want to live in a country where we have our hand held from cradle to grave and are taxed to death at a young age.
These*&^%$r’s khow how to suck the fun and the life out of everything.
Perfect image. It goes back in every postage paid envelope from AARP and affiliates.
The government has to do it for them. So they can steal it and spend it.
Let me guess...this needs to happen ..so government can claim more regulatory oversight of IRA’s..once they are “government mandated” ...basically an mechanism of snooping and controlling.
SAF...
They want to supplant 401(k)'s etc with what they are calling if my memory s correct a GPA i.e. Gov' t Preferred Annuity or some such rubbish. Esentially a sister program to Social Security with a guaranteed rate of return of 3% (rule of 72's means it would take 24 years to double {epic fail}) and they get if 50% when you die.
Yes this give them a bigger pool for when they "nudge" us into this scheme.....
Aren't the Dimocrats the same party that is looking at nationalizing all existing IRA accounts? There has been a year long thread about proposals, which haven't gone anywhere (yet), along that line.
Now they want everyone to have a mandatory IRA?
What has happened, in Argentina, where these two trends merged?
Remember, a century ago Argentina was one of the wealthiest nations in the world. Then came the Peron’s (sp?) and their socialist programs. Look where Argentina is today.
Who says there is no proof of our worries?
Ruh Roh
anything the govt makes “mandatory” the govt will claim a stake in.... perhaps having these “mandatory” IRA’s managed by “minority” run investment firms- Franklin Raines anyone?
Hey, but we may get farther in the World Cup. /s
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