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401(k) Plan Revamp Eyed By Senate Finance Committee
ABC (All Barack Channel) ^ | Sept. 14, 2011 | By LYNEKA LITTLE

Posted on 09/14/2011 7:44:56 AM PDT by Red Badger

[snip]

On Thursday, the U.S. Senate Finance committee will listen to proposals from a range of interests. On the table are such ideas as revamping the tax treatment of 401(k) plans to make the system more automatic, and possibly adding caps to make contributions less tax-favorable to higher-income workers.

The hearing comes as the so-called retirement deficient Income, the gap between the pension and retirement plans Americans have today and what is necessary to maintain living standards, is at a high of $6.6 trillion, according to the Retirement Research Center.

"Fewer than half of the working public currently have access to a workplace-based retirement plan, so the hearing will address ways to encourage more employers to sponsor – and more employees to participate in – 401(k)-type plans, individual retirement accounts and other vehicles, while maintaining and protecting the existing programs and savings that millions of Americans are counting on for retirement," according to a statement from the Finance Committee.

[snip]

One controversial proposal comes from the Brookings Institute. Senior Fellow William Gale will talk about reinventing 401(k)s by substituting the current deduction for contributions with a flat-rate refundable credit that would be deposited directly into the saver's account.

Gale of the Brookings Institute, says that a flat rate refundable credit will:

1."Address long-standing concerns in the retirement saving system by improving incentives for most households to participate and by raising national saving.

2. Offset pressures created by the current weak economy for households to reduce their retirement saving.

3. Help solve the long-term fiscal problem facing the country by raising $450 billion over the next decade in a manner that is consistent with the principles of broad-based tax reform and distributes the fiscal burden in a progressive manner."

(Excerpt) Read more at abcnews.go.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Government
KEYWORDS: 401k; 401ktheft; ira
It's starting...................
1 posted on 09/14/2011 7:45:01 AM PDT by Red Badger
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To: Red Badger

Keep your f’n hands off of my 401(k)!!! You a-holes have all but ruined Social Security for anyone under 50 and my private savings are all that I will have to retire on.


2 posted on 09/14/2011 7:47:56 AM PDT by JrsyJack (a healthy dose of buckshot will probably get you the last word in any argument.)
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To: Red Badger

refundable credits, tax reform, distributing the federal burden...BOHICA, this can’t be good.


3 posted on 09/14/2011 7:51:07 AM PDT by JrsyJack (a healthy dose of buckshot will probably get you the last word in any argument.)
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To: Red Badger

If you’ve worked hard, saved, and invested well, you will be penalized.

Take from the ant, give to the grasshopper....


4 posted on 09/14/2011 7:51:16 AM PDT by G Larry (I dream of a day when a man is judged by the content of his character)
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To: Red Badger

The King wants his money.


5 posted on 09/14/2011 7:52:49 AM PDT by edcoil (The will to win is important, but the will to prepare is vital. -- Joe Paterno)
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To: G Larry

But it’s not YOUR money. Nothing is yours. It’s all theirs...after all, they printed it.


6 posted on 09/14/2011 7:54:29 AM PDT by ponygirl (Okay, so you're not a racist. Who are you going to vote for in 2012 to prove you're not an idiot?)
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To: Red Badger
When the word “progressive” pops up, that us all I need to read.
7 posted on 09/14/2011 7:54:29 AM PDT by mosaicwolf (Strength and Honor)
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To: Red Badger

Right. That approach will be good for the stock market. In the 1930s we had panic runs on the banks, now we will have a run on retirement investments. So how many trillions will be lost in the markets?


8 posted on 09/14/2011 7:55:55 AM PDT by grumpygresh (Democrats delenda est)
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To: JrsyJack

Ditto! Mess with my retirement accounts I’ll start destroying $#!+...


9 posted on 09/14/2011 7:56:31 AM PDT by Niteranger68 (If you don't vote for the best candidate, you're no different than a draft-dodger.)
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To: Red Badger

***Fewer than half of the working public... ***

It won’t be long before it will be reported that ‘fewer than half of the public is working...’. Just wait and see.


10 posted on 09/14/2011 7:58:19 AM PDT by MichaelCorleone (Those who love liberty love Sarah)
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To: Red Badger

“”Fewer than half of the working public currently have access to a workplace-based retirement plan, so the hearing will address ways to encourage more employers to sponsor – and more employees to participate in – 401(k)-type plans, individual retirement accounts and other vehicles, while maintaining and protecting the existing programs and savings that millions of Americans are counting on for retirement,” according to a statement from the Finance Committee. “


and, by law if they do not have access to a 401K plan they can make a tax deductible contribution to a personal IRA....

what’s funny is they want to 1) means test for social security and reduce the benefits for the “rich” 2) considering capping the amount of $$$ the “rich” can personally fund their own retirements....hysterical...


11 posted on 09/14/2011 7:59:06 AM PDT by God luvs America (63.5million pay no federal income tax then vote demoKrat)
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To: Red Badger

Grab your money before its gone. Better to take the tax hit than lose it altogether.


12 posted on 09/14/2011 7:59:06 AM PDT by cripplecreek (A vote for Amnesty is a vote for a Permenant Democrat majority. ..Choose well.)
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To: Red Badger

BOHICA...


13 posted on 09/14/2011 7:59:24 AM PDT by glorgau
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To: Red Badger

Pull it or lose it....I knew this was coming!


14 posted on 09/14/2011 8:03:11 AM PDT by seeker41 (CULPRIT CHINESE COMPANY INFO.)
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To: JrsyJack

I’m over 50 and I’ve watched my 401 go into the toilet so many times it’s not funny. I agree, these turds just keep looking for a way to take it away from us. I think I will cash it out and take what is left and find an island they don’t control and move to it. Course, if enough of us did it they’d find a way to declare war on the island. Shame on all of them.


15 posted on 09/14/2011 8:04:23 AM PDT by Ab Alius Domitor ("In the end;the winner")
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To: Ab Alius Domitor

Here is a responsible recommendation: TAX the distributions at the lowest CAPITAL GAIN rate. They are afterall a long term investment. Why tax them as regular income.


16 posted on 09/14/2011 8:06:39 AM PDT by Mouton (Voting is an opiate of the electorate. Nothing changes no matter who wins..)
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To: God luvs America

What you wanna bet that if you have a 401(k) plan, the govt will suspend your SS payments until you run out of funds. If you die before that, they seize it..........


17 posted on 09/14/2011 8:12:11 AM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: G Larry

I’ll spend every penny on hookers, booze and gambling before I let them have a penny. Even if my retirement plan after that is federal prison for tax evasion....


18 posted on 09/14/2011 8:14:24 AM PDT by Kozak ("It's not an Election it's a Restraining Order" .....PJ O'Rourke)
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To: Red Badger
If they really want to decrease the gap between 401(k) retirement plans and traditional pension plans (which they don't) then keep contributions pre-tax as they are today, but treat the account like a Roth IRA with no tax consequences at time of withdrawal.
19 posted on 09/14/2011 8:15:34 AM PDT by Yo-Yo (Is the /sarc tag really necessary?)
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To: grumpygresh

If a ‘run’ happens on the markets share of 401(K) FUNDS, the value of the shares diminishes at a logarithmic rate so that the final value approaches zero. Even if you have substantial shares in your 401(k) they will be worth little or nothing......


20 posted on 09/14/2011 8:15:59 AM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: Kozak

I’d stay away from the booze and gambling - the government takes a hefty cut from those activities.


21 posted on 09/14/2011 8:21:33 AM PDT by AdSimp
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To: Red Badger

Means testing for SS is likely in the future....so if you scrimped and saved, you’ll probably get scr****.


22 posted on 09/14/2011 8:22:04 AM PDT by Sacajaweau
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To: Red Badger

never gonna happen....


23 posted on 09/14/2011 8:23:57 AM PDT by God luvs America (63.5million pay no federal income tax then vote demoKrat)
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To: cripplecreek

“Grab your money before its gone. Better to take the tax hit than lose it altogether.”

Too late


24 posted on 09/14/2011 8:29:53 AM PDT by EQAndyBuzz (Sarahcuda in 2012. Nothing but Net!!!)
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To: Red Badger

It’s a $450 billion tax on 401Ks over 10 years.

“Help solve the long-term fiscal problem facing the country by raising $450 billion over the next decade in a manner that is consistent with the principles of broad-based tax reform and distributes the fiscal burden in a progressive manner.”

1. The long-term fiscal ‘problem’ facing the country is excessive entitlement spending aka vote buying.

2. Since when is a tax increase “broad-based tax reform”?


25 posted on 09/14/2011 8:30:40 AM PDT by Justa
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To: Red Badger
1. A "flat-rate refundable credit" is financial jargon for theft of your retirement money by the FedGov. They get to decide how much you will have for retirement. They are the Brookings Institute is a bunch of communist bastards.

2. Without high income earners contributing to 401(k)s, the managers of 401(k)s like Fidelity, Vanguard, Schwab, etc. will have to charge the lower wage earners higher fees, further driving lower wage earners into poverty (this is what the Marxist Muslim in the WH wants).

3. Lower income earners without access to a company sponsored 401(k) DO have access to retirement accounts. They are called IRAs and anyone with any kind of savings can open one and receive the tax advantages of a 401(k), but without the employer contribution which would simply be a wage increase if 401(k)s were not available.

Rest assured that whatever comes out of this committee will not be to the advantage of the American people, but will only increase revenues for the almighty FedGov. They want you to love big Brother.

26 posted on 09/14/2011 8:39:40 AM PDT by Dr. Thorne (Fall on your knees before Christ, your only salvation!)
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To: Red Badger
Fewer than half of the working public currently have access to a workplace-based retirement plan, so the hearing will address ways to encourage more employers to sponsor – and more employees to participate in – 401(k)-type plans, individual retirement accounts and other vehicles, while maintaining and protecting the existing programs and savings that millions of Americans are counting on for retirement,"

How many of those employers don't have 401(k)s because of the nightmarish reporting requirements already in place to make sure that the highly paid employees don't take unfair advantage of the program. Anything the Democratic Senate will just make 401(k) programs vastly more difficult and fewer employers will deal with it.

My company just about gave up on its retirement program for this reason until we found a company specializing in doing the forms for a few hundred dollars separate from the investment company itself.

27 posted on 09/14/2011 9:00:40 AM PDT by KarlInOhio (Due to the earthquake the president has officially implemented Rule 18-1.)
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To: Red Badger

Be afraid, very afraid.


28 posted on 09/14/2011 10:01:08 AM PDT by CPT Clay (Pick up your weapon and follow me.)
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To: Ab Alius Domitor
" these turds just keep looking for a way to take it away from us"

Yes they do - very successfully by devaluing the currency on a daily basis.

29 posted on 09/14/2011 10:54:14 AM PDT by I am Richard Brandon
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