Skip to comments.Watch Out! Feds Could Seize Your Private Retirement Savings
Posted on 05/22/2011 5:04:36 AM PDT by KeyLargo
Newsmax Watch Out! Feds Could Seize Your Private Retirement Savings Saturday, May 21, 2011 04:58 PM
By: Greg Brown
How long before Uncle Sam hits private pensions to balance the public budget? Its quickly becoming a reasonable question to ask.
Treasury Secretary Timothy Geithner is ringing alarm bells across Washington, D.C., warning of a disastrous outcome if an agreement to raise the debt ceiling is not made soon. A default would call into question, for the first time, the full faith and credit of the U.S. Pensions, Federal Government, Debt Ceiling, Retirementgovernment, Geithner wrote in a letter Friday to Sen. Michael Bennet, D-Colo.
After weeks of such warnings, the United States has hit its $1.43 trillion debt ceiling hard. In response, GOP leaders have demanded cuts in federal spending equal to any increase in the limit while maintaining a strong line against tax increases.
(Excerpt) Read more at newsmax.com ...
Potentially, the deal on Roth IRAs could be undone, too."
This has been done in other countries.
I believe the House will prevent such a move from taking place through the legislative route, leaving the administration with doing this by executive fiat.
I do not believe that would happen unless Obama gets re-elected and does not have to face the voters again.
Here is a clue for you: there is no way in hell we can pay for all the "unfunded liabilities" we have signed up for. I think the bill now is $40 Trillion.
'First they came for the Jews....and I said nothing because I wasn't a Jew. Then they came for the..........'
"A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines."
Ralph Waldo Emerson
(1803 - 1882)
What a cool way to start a civil war. And believe me, this WOULD cause a war. If it weren’t for the horrors of war, it’d be almost fun plinking ‘rats off like they’re ducks on a pond.
Deliberate, deliberate, deliberate
Watch Out! Feds Could Seize Your Private Retirement Savings
I have had such a problem with the bank teller where I do my checking, first off its just a Wells Fargo branch store in a Walmart, in a small town.
So I see the same tellers week after week, and every one of them try a repetitious spiel of trying to get me to open a savings account.
And they just will not stop, I have literally had to cash my weekly check elsewhere because I am afraid I may just tell them adamantly what I think.
I believe only a minimal amount of money should be in a bank right now.
I talked to my financial adviser. There is no way in hell any seizing of such assets will ever happen. It won’t even get into committee. It would essentially shutdown every financial investment company.
Taxation? That’s another story.
Essentially social security was gutted for the last 40 years.
IRAs will be gutted by a VAT. Count on it. Means testing, everything. Why people couldn’t/can’t see this coming is somewhat of a mystery. One only has to look at history to see how this will play out. What makes this “interesting” is that in other countries who experienced “debt crisis” those who held dollars, marks or swiss francs were OK, relatively speaking.
If they do that there will be blood in the streets.
Geithner has already seized the bonds that back federal employee retirements. Just a matter of time until he gets yours.
“It cant happen here, you might say. But it has happened in plenty of indebted countries, such as Argentina and Hungary, and it just happened last week in Ireland. Hungary seized $14 billion from private pensions, reported The Christian Science Monitor, while Bulgaria and Poland demanded partial government control of private savings.”
I warned a friend of my about this over a year ago and he laughed...
Can’t wait to see what he has to say now...
This really isn’t news, they have been planning this since the Day the Marxist Muslim Man Child was elected. Almost everything the Administration has done since it’s inception has been to DESTROY what is left of This Country. This has been in the works for a very long time. Hell it has been introduced in the House a Few times already.
The Adam Smith Institute Blog
European nations begin seizing private pensions
Hungary, Poland, and three other nations take over citizens’ pension money to make up government budget shortfalls.
By Jan Iwanik, Guest blogger / January 2, 2011
Peoples retirement savings are a convenient source of revenue for governments that dont want to reduce spending or make privatizations. As most pension schemes in Europe are organised by the state, European ministers of finance have a facilitated access to the savings accumulated there, and it is only logical that they try to get a hold of this money for their own ends. In recent weeks I have noted five such attempts: Three situations concern private personal savings; two others refer to national funds.
Just realize this is not a new conversation going on in our rulers chambers.
Much of this was being discussed back in 2008 just before the ‘crisis’ hit. It was one of the main reasons I took my money, paid the penalty and pulled it out of any type of government ‘tax-free’ anything the day after the election.
They were writing this stuff then, they’ve had 4 years or more to work on perfecting it to not miss anything.
We talk about our unborn already being in tax debt, but somehow never think about our government taking their future tax earnings from our retirement accounts ...now. The whole idea behind this tax deferred stuff was you would be in a low tax bracket at distribution time too. So instead of a 30-35% bracket you may be down in a 15-20% bracket.
If the government decided to claim their tax money today, they would take it at the higher tax rate. But your overall earnings would be cut by 50% or more. You not only lose 35%, but you also lose the earning power of that money.
“Black says it’s likely any attempt by the U.S. government to seize private retirement accounts would be preceded by a cataclysmic economic event similar to the 2008 financial crisis, only worse. This time, lawmakers will respond by changing investment law that may force retirement account holders to invest a portion of their savings in, say, 30-year Treasury notes.
Some lawmakers are onto this, however. Rep. Michele Bachmann, R-Minn., has recently criticized such efforts in a letter to the Obama administration warning against attempts to confiscate Americans’ retirement accounts.”
There’s a huge difference. The Europeans are weenies, and they aren’t armed. Our forefathers knew what they (the forefathers) were doing with the Second Amendment.
I believe what they did in Ireland was force a certain percentage of private pensions, both 401K and company funded, to be invested in governments bonds. So, if they confiscate your 401k, at least they’ll leave pile of IOUs. So instead of privatizing Social Security, they made private savings into 401ks.
Yup. While the public retirements are being raped the govt will be cheered on. Then when it’s their turn, it will suddenly be unconstitutional, immoral, time for revolution, etc.
Anti-Annuity Sentiment Boils Over Before DOL Hearings
Sep. 14 2010 - 9:12 am
Notice they dont breathe the word annuity. The U.S. Labor Department and the U.S. Treasury Department are holding hearings today and tomorrow on how to annuitize, that is how to get a lifetime of income, from your 401(k) or IRA, entitled: Hearing on Certain Issues Relating to Lifetime Income Options for Participants and Beneficiaries in Retirement Plans.
Total U.S. retirement assets were $16.6 trillion as of September 30, 2010. If the Feds take every penny, it's still not enough to put a dent in Zeros' crack-cocaine spending addiction. The best they can do is kick the can a few years down the road, while destroying US stock and bond markets.
I have always felt that the Roth IRA rules would eventually be “undone” resulting in double taxation.
I swear, if Obie gets re-elected and we still have a Dem majority in the senate, they are gonna tax the H out of us.
I expect fees and taxes out the ying-yang.
I also expect there is something in the works for all of these foreclosed houses around the U.S. Banks own the houses, the govt owns MANY banks, therefore the govt. owns many of these houses. I expect a BIG housing giveaway. Coming to your neighborhood soon - “the great unwashed.”
You are dreaming. We are already getting plucked for about 50% of our income through various taxes, fees, etc. I don’t see any armies forming up. People are content to watch american idol and eat popcorn.
I suppose I should be “happy” that I pay so much in taxes that get redistributed to people who don’t work that I cannot afford to put any money away for retirement.
Um...that’s called selling. I think you’re making a mountain out of a molehill. Companies sell products.
Transcripts from hearings held last September:
Lifetime Income Options For Participants And Beneficiaries In Retirement Plans
Lifetime Income Options Joint Hearing Written Testimony
“Ill take: How to start a civil war for $1,000 Alex”.
I was unaware the FERS fund was tapped!!!
I’m going to have to look into this.
You are right except for at least the 4th or 5th time after I said no they just repeat the same song, I would hate to have a job where the security of my job is at stake unless I have to sell some form of “package”
Sorry mate, I’m a blue collar worker, I drive big trucks for a living.
“I talked to my financial adviser. There is no way in hell any seizing of such assets will ever happen.”
There is no way the government will simply seize our retirement assets. Instead, they’d force us to trade them for credits in some new mandatory government plan.
I warn my clients that someday congress could tax distributions from Roths.
Obama Administration Plans to Seize 401(k) Retirement Accounts
Written by Joe Wolverton, II
Wednesday, 05 May 2010 12:45
One aspect of a new and improved federal regulatory scheme is the seizure of 401(k) retirement plans and the subsequent government-administered disbursement of the funds.
In Chapter 3 of the Annual Report on the Middle Class released in February by Vice President Biden and the White House Task Force on the Middle Class, the Obama administration calls for enhancing the retirement options for the middle class by imposing new regulations to improve the transparency and adequacy of 401(k) retirement savings.
The plan, as sketched in the 43-page document, calls for the creation of something called Guaranteed Retirement Accounts (GRAs). Biden slyly shifts the onus for the idea through weasel words typical of the federal government: Some have suggested the creation of Guaranteed Retirement Accounts (GRAs), which would give workers a simple way to invest a portion of their retirement savings in an account that was free of inflation and market risk, and in some versions under discussion, would guarantee a specified real return above the rate of inflation.
See post 21.
and a few posts later I linked the actual transcripts.
The details are almost all ironed out.
Which means that it will sometime down the road happen.
Speak for yourself - I'm ready for the fight, and you should be too. Sitting on your butt while the government rapes you doesn't fit the profile of an American.
Bingo. Joe the plumber was right when he asked &*(*^%$ $$$ %^& & 0bozo that question on the campaign trail.
A VAT accomplishes this, so what recourse does anyone really have?
I don't have any retirement fund so I wouldn't be 'personally or directly' affected. But that's besides the point, it's that 'principle' thingy. So if Barry's 'Money Gestapo' started to seize private funds, then that's it. Time for every American to Lock and Load.
*** If it werent for the horrors of war, itd be almost fun plinking rats off like theyre ducks on a pond. ***
Yep. As they say, War Is Hell. However, I'm old enough that I've pretty much did all I want to, except retire to Montana (friggen Libs have bought up all the land now). So what I and other 'old timers' would be doing would be pretty much for our Grandchildren -- Saving The Republic for them.(1) And as I tell my wife -- it seems like almost daily now -- 'When the SHTF, just give me a High Perch and enough water and rifle ammo for a week.' Then if I've made it through that, everything else would be a bonus.
(1) A few months back I met a fellow 'older' conservative at a family party. We talked politics and what's 'possibly pending'. As I told him when we were all leaving, 'I have one more Good Fight left in me. He nodded in agreement.
[clarification: I do not advocate violence. But I will not quietly cede the USA to Communists.]
Time for me to empty my savings and put the money under a mattress. Won’t earn any interest, but then again, the Feds can’t take it.
Pizz on you, Obama. You ain’t touching my hard-earned money.
We now hold the House. After Nov 2012, we will hold the Senate and Presidency unless the RINOs prevail. A fix is in sight. Next step would be federal prosecution of the DC Entitlement Class.
They already are, it’s called Inflation. Germany -1923- in a few short months ones lifetime savings wouldn’t buy a postage stamp!
As one freeper commented, ".. this just happened last week in Ireland..!"
As Congress squares off over a debt ceiling vote, the Treasury is scrambling to find cash in the couch cushions. One of the ways it will scare up extra money is by putting off saving for the retirements of federal workers in effect, short-term borrowing from public pension funds.
Inflation is already here
by Brad Schaeffer
Meanwhile the average American is being squeezed ever more by rising prices and diminishing real value of their savings. The Fed and their enablers in the Federal City will have much to answer for in the years ahead. Whats happening in Washington now is destroying the class of people who save an invest, said investment guru Jim Rogers. All the people who did the right thing are earning that much money right now. Thats not how the system is supposed to work.
But that is how the overrated minds running the Fed and the Treasury, neither of whom has ever run a private business feel how the system should work. They seem utterly incapable of understanding that the past predicts the future until it doesnt. By the time we realize the world has changed and the old school approach is just that, it may be too late.
If IRA holders take advantage of the provisions that allow them to purchase illiquid assets like property or investments in private companies, then the account becomes impossible to liquidate prematurely. Of course the investments must be carefully chosen, but the only issue then becomes finding a custodian willing to approve the transactions.
I use my own Roth to hold venture capital investments, none of which have any tangible value at the moment, but all of which hold great promise. These assets literally cannot be liquidated. Take that and smoke it, tax grubbers!
‘What a cool way to start a civil war....”
Indeed it will. And if it starts, ‘twould be best to complete it. No liberals left standing, breathing, or taxing.
I'm convinced that this wouldn't even cause a demonstration of any size.
We take a beating and wait for more in this country. We have kids to raise, jobs to work at and lies to believe.