Skip to comments.US Departments of Labor and Treasury Schedule Hearing on Confiscation of Private Retirement Accounts
Posted on 09/01/2010 5:56:28 PM PDT by Orange1998
On August 26, the US Department of Labor issued a news release It lists the agenda for the joint hearings being held with the Department of Treasury September 14-15, 2010 on what is euphemistically called lifetime income options for retirement plans. The hearings are being conducted by the Labor Departments Employee Benefits Security Administration.
I dont like speaking in tabloid-style terms, but the unstated agenda of these hearings, as I understand it, is to push for the US government to eventually nationalize (confiscate) all assets in private Individual Retirement Accounts (IRAs) and 401K plans!
The US government is desperate to get its hands on private assets to help cover soaring budget deficits and debts, and this is simply the largest and easiest piggy bank that could be seized. The Investment Company Institute estimates that at the end of 2008 that there were $3.613 trillion of assets in IRAs and $2.350 trillion of assets in 401K plans.
For more than the past ten years, I have warned readers that the US government was eventually going to go after private retirement accounts. I considered that as the most important reason to avoid establishing precious metals IRAs. Very few other writers (Ron Holland being one) have picked up on this issue as early as I did. In fact, the mainstream media pretty much ignored the subject even after a House Committee held hearings on the issue in October 2008.
Obviously, an outright seizure of assets would meet stiff resistance from the public. So the confiscation will never be described as such by government officials. Expect to see terms such as retirement income protection thrown around. It is highly likely that such a program would be implemented in steps to help overcome public opposition.
The US government plan is to eventually take ownership of all assets in IRAs and 401K accounts and replace them with US government Treasury Retirement Bonds. In the October 2008 hearings, it was proposed that these bonds pay a 3% interest rate. Another major change is that, upon retirement, the individuals retirement account would be converted into an annuity. Once the individual is deceased, the individuals heirs would not inherit anything (similar to what happens now with Social Security accounts).
This may wake a few people up!
I cannot think of a policy that will more quickly induce people to quit investing in IRA’s and other retirement accounts.
They try that crap and I fear a lot of people are going to get killed!
If the dumbass in the White House was looking for a way to start CWII, he’s found it.
What makes you think they've lost power?
I hate this administration with a passion, they are pushing people over the edge.
The machinations of collectivist/totalitarians. The author didn't even mention wealth-draining, asset-robbing Socialist Health Care.
I’ve had a hunch this would happen for years.
They’ll claim that it is “just too expensive.”
20%, I’d cut it by 50%, to start.
Happens every time millions of people have nothing left to lose. It's just History.
The government is not proposing to confiscate your IRA/401(k).
This proposal is about providing the account holder the OPTION to convert it into a lifetime annuity. Some 401(k) administrators already offer this option, but it is not required.
There is also a proposal to include an estimate of the lifetime monthly income that your current account balance would provide, if you were to retire at that moment and in the future at the normal retirement age. This is intended to give people the ability to figure out where they stand, and whether they need to save more/less.
There are many annuity options, including a fixed term, lifetime, and even lifetime with a guaranteed term. The last one might be something like: lifetime, but guaranteed for 20 years to your heirs if you die within 20 years.
Would everyone please stop hyperventilating over this? This is nothing but a blogger trying to get you stirred up and send more people to view his blog.
Well, is about two years since I stopped this ‘easy candy’ for the scum bags.
Remember Argentina circa 2000:
I seriously doubt it will add very many to the number who are aware and alarmed about what is happening. Most don’t have anywhere close to enough to get them by and think this would be a bailout.
If you’ve spend decades saving and planning for a “comfortable” retirement and do not have it invested in cash flow producing assets or maybe precious metals... kiss your retirement good-by... no way to compensate for the inflation that is coming.
BOHICA almost all of us are screwed with no way to recover.
I wonder what happened to the Fourth Amendment. I know since Kelo things have gone a bit haywire, but to actually allow the govt. to seize private property for their own use, that is going a bit far. I think if they are allowed to do this, we need to scrub the filth out of every piece of the govt because the founding Fathers would never recognize this country if they were able to see it again.
Sounds about right.
That was my first thought.
The Beast will do whatever it takes to save itself.
Saw this coming a while back.
Sucks for uncle sham that I’m just a dirt poor nobody with nothing for him to steal.
The Author of the Article is Patrick A. Heller the owner of Liberty Coin Service.
What possible ulterior motive could such a person have in perpetuating Fear concerning IRA’s and 401k’s?
People may be motivated to Closeout their accounts and take the Tax hit as well as pay the penalty in order to convert their Funds into Hard Assets. (Gold or Silver)
This is not to say that confiscation could not occur.
Argentina has done it.
There are other and less painful means to resolve the US Debt.
Cut Spending. Zero out the Budgets of the Alphabet Agencies.
Repeal Obamacare. Reform Entitlement spending.
This has been coming for while. You didn’t really think they were going to let all that money just sit there, did you?
And it’s not like they plan to provide better investment strategies. They plan to burn through that cash.
>> I hate this administration with a passion, they are pushing people over the edge.
Move the edge.
There are a few bloggers and a Federal Register entry that show GRAs are indeed what is planned. Worked in Argentina....
“Currently the concept is proposed as an Automatic IRA, (aka GRAs) we hide the Opt Out part in pages and pages of legislation forcing Congress to pass the bill to find out what is in it, and then give the option of investing in R Bonds which of course some blue ribbon panel/commission/oversight committee could appropriately administer after they have been created, I just betcha it could be pulled off. In fact, if we offer employers no fiduciary liability if:
they use a provider that is on a list of approved providers or uses R-Bonds.”
This is a lock and load issue for me. If they want to know if Grandpa Vet can still fight..then just try and touch my 401k.
We should be going just the opposite way. We should be replacing Social Security with individually owned and controlled accounts so that no politician can steal them.
Every citizen should have their own account..and taxes should be used to support who are truly in need. I have lived in countries with this system and it works. Even working people can end up with their own good retirement accounts. Now, all many people have is IOU’s from the Govt.
LOLYou don't really BELIEVE that this "option" will soon then become "mandatory", do you?
Sorta like the Social Security Trust Fund that became the pile of IOU's....
Stopped reading after I read this: “...Confiscation of Private Retirement Accounts”... =.=
I don’t want a annuity..I want to invest my own money...win loose or draw.
So they start out with the option and then later change the law to make 104K contributions taxable unless you join the new program. Look at how Social Security evolved.
Nothing the government does is for the producers. It is following the old Roman model of bread & circuses... until the bread runs out. The government would never outright confiscate funds. That would be too blatant... but they need that money to buy the next election. Pay off this or that special interest group. So, what could be better than to offer an option.. at first. Skim a little here. Chisel a little there. Next thing you now you've got another FreddieMac or FannieMae. The government only knows how to turn gold into lead.
When that happens, you can scream all you want.
Right now, the government is not proposing to do anything more than make it easier for you to buy an annuity with your 401(k) or IRA balance.
You can do it right now, with only a bit of effort. But, only a small percentage of 401(k) and IRA investors are aware of that option.
Sure it will be voluntary, the same way when Social Security was passed. The people were told it was voluntary.
Then, you can continue exactly as you planned. What the government is proposing that 401(k) administrators offer the option as an alternative to cashing out or rolling over to an IRA.
The list, ping
Let me know if you would like to be on or off the ping list
How, and through whom?
Just like we should have waited to let OBAMACARE pass, and NOW we can scream about it? A little late, and will never be repealed.
I'm sorry; closing the barn door AFTER the horses are gone is not the way to operate.
Give 'em time. They want and need the money.
The political class would certainly find pedaling this kind of crap a LOT easier and less painful that making the cuts that you mention (and I favor, btw). But politicians are incapable of cutting anything. We’re still stuck with the Dept of Ed, Energy, and the TVA, for cryin’ out loud.
They figure the American people are going to go along with this because they won’t understand it, but it “sounds” good.
All I know, is the fact that your heirs would get nothing under their system is the thing that MAKES it a confiscation scheme. Can you imagine having a half million or so in an IRA, and have them convert it to these piss poor gov’t bonds and you die a month later? Your kids get nothing?
It's already an option, for individual account holders. Do a Google search for "convert ira into annuity" or "convert 401(k) into annuity" and you'll see lots of articles about it. You can do it right now -- and it's been that way for decades.
This proposal is that 401(k) administrators should be required to provide the option to you. There is also a proposal to estimate the value of a 401(k) account in a form that people can understand: the potential monthly lifetime income.
The government has done a wonderful job with Social Security. Every dime collected is secure in a lock box. SARC
I quit contributing to my 401k January 2009, which was the first chance I had under the rules my 401k operates under. And it was EXACTLY because of this. I remember the whispers from these statements in 2008.
I figured they would eventually do this, and I’d be damned if I would put one more cent in there for them to take.
I can’t get anything out of it now, and it’s worth so little with all that has been/is going on.
I can’t believe that this wouldn’t crush the markets. But I suspect that is part of the intent.
Do a Google search for something like "convert 401(k) into an annuity".
Here's one of the results:
Note: this isn't an endorsement. I've used this site to see what current annuities were yielding, but have never bought anything from them, and I'm not selling anything.
Line ___________ Sand. They had best not cross it.