Skip to comments.Which Executive order Allows the Gov't to Confiscate 401Ks?
Posted on 02/27/2011 8:23:52 AM PST by originalbuckeye
Which executive order will allow the Feds to take our savings?
Not law, but the democrat party parasites’ dream for years.
The House now stands in the way.
Here’s an interesting read:
This isn't the first time the idea of taxing 401K's has come up. Back in '93 there was some talk of a one time 30% tax on 401K's, as well as an "imputed income tax". I've never had a 401K. I prefer to do it my own way. I've never thought the gubmint would be able to restrain itself from taxing "tax free" investment vehicles anyway. 60% of American households now have 401K's. I wonder what the reaction will be to a 30% tax on their futures? Nothing else thus far seems to rile people very much....
oops...I should have added that my link is from 2008.
Relax, that is not the case.
The discussion was originally here:
On the upside, folks, here is a Great Article about the U.S. today:
Ain’t happening....talk about political suicide. Attempting such a maneuver would permanently bury the ‘rat party forever.
Øbama beleives he’s too big to fall . . .
This balloon was first floated over a year ago, again 6 months ago, and last time about three months ago. Read this:
The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.
She doesn’t mention confiscation but it’s there.
That's for damn sure!
FDR confiscated gold using an executive order, I wouldn't doubt Sheik Hussein would try the same thing.
Oh to be sure, they are being confiscated, not by some law that would rile the masses, but by inflation.
Got to pay for those union retirements somehow.
Executive Order? We don’t need no steekin’ Executive Order...
IIRC, it was Executive Order 7.62
See, here’s the thing: they don’t NEED law, or even an executive order.
We all already know that the stock market is being propped-up by nothing but Bernanke’s QE and “liquidity” games. They already have the power. Here’s how it will go down, if they decide they want your 401k:
1) Bernanke leaks to Bankster insiders that he’s going to pull liquidity and stop QE. Since we already know this and this alone is what is propping up the stock “market”, insiders will start running for the door before individual “investors” and 401k holders know what’s going on.
2) As a result of #1 above, the market will tank ~10% overnight. Individuals with private trading accounts won’t want to be left holding the bag, so they’ll sell and short everything they can. But people with 401k’s will start to panic again, since they have no simple mechanism to get their money out.
3) Uncle Sam, who planned this all along, steps in with a convenient plan to save everyone’s 401k: they offer an alternative where you can quickly and easily trade (at a discount of course), your 401k funds for government-backed retirement plan with a “guaranteed benefit”, with no penalty.
4) Most people will jump at this offer of “security” rather than watch the value of their funds plummet as the people who are able to actually cash out, do.
5) Voila. They’ve now got your money AND they also now own a huge percentage of the private economy, obtained at a discount. All you’ve got is another Social Security “promise”.
I bet they they have the power to this tomorrow, if they wish.
They won’t get me though: I cashed out my 401k last year and bit the bullet on the penalty, but offset much of it by buying a house with all the cash and taking the homebuyer’s tax credit, as well as the credit for buying a eligible bio-mass heating system (pellet stove).
Since I’m now living inside my 401k, they’re going to have to come take me out of it by physical force if they want it.
Its sometimes referred to as the 2011 national budget.
If you mean, "That'll never happen here" then count me out.
This is going to go the way of student loans...You will deal with the government bank...Basically...another SS program.
New rules go into force on Monday. A 10% drop automatically puts the brakes on the market for 48 hours. Just kind of interesting you'd say #2 and I posted early this morning...On Monday, new restrictions on short selling with go into effect. Under the new rules, the circuit breaker will kick in with a 10 percent price decline...
All kinda freaky...
I think that’s what I was remembering. Pelosi discussing how the GRA would work. My reaction was ‘I already had a GRA. It was called Social Security and you Legislators spent it ALL’.
Isn’t the Nationalization of the Student Loan Program in the Obamacare Act? And wouldn’t it be nullified with the repeal of Obamacare?
If the Dems grab 401s then they might as well commit Harry Kerry! That would be an exceptional over-reach!
Hussein might have made a sly reference to this in his state of the union address—something about protecting the assets of seniors from the vagaries of the stock market. A friend suggested that this could have been just a preventive statement warning about privatizing Social Security a la George W. Bush, but I don’t think so. It’s hard to know when vague statements are made. I think they are setting us up for the big grab.
There are only two PR strategies that would work for the government to confiscate 401k money.
1. this is untaxed money therefore to make things “fair” to everyone, something needs to be done. Everyone needs to pay their fair share. No more tax loopholes for the rich.
2. to protect people from poorly performing markets, the 401k accounts shall be converted to IRA accounts. At some future date, IRA accounts must be merged with FICA to preserve social security for future generations. Its the right thing to do for america.
Will the second amendment be used for its intended purpose if the government even tries this?
It’s been discussed at the Dept. of Labor; I don’t know if everything they do would have to go through Congress.
The same one that allows Obama not to defend the Defense Against Marriage Act...
Executive Order not needed the banks and wall street did a good job of making 401’s worth drop like a rock.
“Which executive order will allow the Feds to take our savings?”
Let me add one more worry to your day...
Several federal judges have ruled that Social Security payments are not guaranteed.
It might take take a Congressional vote instead of an Executive Order, but the federal government does have the authority to suspend Social Security any time it pleases.
And - if people ever stop buying US Treasury debt - Social Security will essentially suspend itself, and no election or court appeal will be able to bring it back.
“Inflation” will steal it!!!
The same as everything else Obama’s been doing: Executive Order # I-1.
P.S. Any rainbow will do.
401(k), 403(b), (Traditional) Roth, etc are not tax-free — they’re tax deferred. Once you start collecting, you’ll pay taxes (presumably at a lower rate).
But consider: those contributions lower your income tax, but they don’t lower your FICA taxes one bit. You pay full SS, but when it comes time to collect (if there’s anything left to collect), you’ll lose SS benefits because you saved for yourself.
Of course. All part of the plan. The insiders get out before the 10% circuit breaker kicks in, leaving everyone else holding the bag. Said bag-holders are then even more nervous. Repeat this cycle a few times, and most of our iGadget-addicted American Idol generation will be begging Uncle Sam for a plan to "rescue" their 401k money.
It is rather convenient the new rules go into effect just as the ME is going into revolution mode.
There are major market players here moving chess pieces we cannot see.
You are correct, the public will hand over their 401k, IRAs, etc. and never realize they did it at the point of the gun.
What many won’t realize it is a piggy bank of no return. It will go in, but will never come back out...no matter how badly you need YOUR money. The government will dole it out to you as they see fit. Not even after you retire will you gain any measurable access to your retirement funds. That life-long trip you wanted to take...forget about it...all your funds go into an annuity, doled out and managed by...government unionistas.
Really? The democrats got away with raiding the SS funds without much turmoil, didn’t they? Or am I thinking of something else?
Yeah - ain't happening.
I believe it would start a shooting war in this country. Theft cannot be made law and survive..democrats would be the first to go...