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401(k) Tax Changes May Be On Fast Track
The Street ^ | 09/23/2011 | The Street

Posted on 09/28/2011 6:16:03 PM PDT by Rusty0604

In the coming weeks, Americans could face sweeping changes to the tax deferral status and funding strategies of their retirement plans.

(Excerpt) Read more at thestreet.com ...


TOPICS: Breaking News; Business/Economy; Crime/Corruption; Front Page News; Government; Politics/Elections
KEYWORDS: 0; 0bama; 0bastard; 112th; 401k; bho44; biggovernment; communism; confiscation; democrats; govtabuse; liberalfascism; lping; marxism; medicare; obama; obamanomics; rapeofliberty; rapeoftaxpayers; redistribution; retirement; socialsecurity; taxes; theft
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I didn't see this posted yet
1 posted on 09/28/2011 6:16:05 PM PDT by Rusty0604
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To: Rusty0604
Trying to help lower-wage workers save for retirement by reducing the 401(k) and IRA contribution limits is like trying to cure a headache with a guillotine. - Hatch

That's a good way of putting it...

2 posted on 09/28/2011 6:19:47 PM PDT by Republican Wildcat
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To: Rusty0604

Before people jump on Boehner, this is coming from the Senate. This would not make it constitutional.


3 posted on 09/28/2011 6:19:47 PM PDT by Perdogg (Do I miss Bush? Hell, I miss Clinton.)
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To: Rusty0604
Great idea!
They wasted the money in the Social Security “Trust Fund” and now they want to make it harder for us to save for our own retirements.
Give me back the 12.4% you've been taking from my paycheck, you no talent assclowns.
4 posted on 09/28/2011 6:21:20 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Republican Wildcat

Well we need to pay more taxes to support the government employee’s fat pensions.


5 posted on 09/28/2011 6:22:08 PM PDT by Rusty0604
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To: Rusty0604

Tax my losses FUBO


6 posted on 09/28/2011 6:22:30 PM PDT by al baby (Is that old windbag still on the air ?)
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To: Toddsterpatriot

No “trust fund” money was wasted because there was never a genuine trust fund, nor was it ever contemplated that there would be a true trust fund. SS was a vote buying scam from the beginning, and it has worked well.


7 posted on 09/28/2011 6:25:24 PM PDT by achilles2000 ("I'll agree to save the whales as long as we can deport the liberals")
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To: Rusty0604

Democrats love the idea of a raid on private pensions.


8 posted on 09/28/2011 6:28:03 PM PDT by yup2394871293
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To: Rusty0604
Hey, Obama -- just go ahead and seize all of our IRA and 401(k) savings, and give those trillions of dollars to Europe so that they can bailout Greece and Spain.

You know you want to.

9 posted on 09/28/2011 6:30:50 PM PDT by ClearCase_guy (The USSR spent itself into bankruptcy and collapsed -- and aren't we on the same path now?)
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To: Rusty0604

My company will probably give up and bail out on our 401(k) if this happens. Yet another reason to hate this dysfunctional government!


10 posted on 09/28/2011 6:32:41 PM PDT by ZippyTheGreat (The Revolution is in progress!)
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To: Rusty0604

Yup. Looking to squeeze the last little dribbles of wealth out of the middle class.


11 posted on 09/28/2011 6:33:22 PM PDT by RKBA Democrat (Lord Jesus Christ, Son of God, have mercy on me, a sinner!)
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To: yup2394871293

There was talk about nationalizing private accounts and letting the SSA administer them. That caused an uproar so now it looks like their taking smaller steps toward it.


12 posted on 09/28/2011 6:33:43 PM PDT by Rusty0604
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To: Toddsterpatriot
Give me back the 12.4% you've been taking from my paycheck, you no talent assclowns.

If that 12.4% was invested in an actual retirement fund, every worker in this country would retire as a millionaire. And a nation full of millionaires won't need government. Social Security is their best tool for continuing the cycle of poverty for future generations.

13 posted on 09/28/2011 6:36:00 PM PDT by Hoodat (Because they do not change, Therefore they do not fear God. -Psalm 55:19-)
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To: Rusty0604
Gale cited the Tax Policy Center's estimate that the immediate, direct revenue loss associated with contributions to IRAs and 401(k) plans will exceed $1 trillion over the next decade. Converting current deductions to a tax credit worth 18% of a taxpayer's retirement saving contributions would raise more than $450 billion in revenues over the next decade relative to current law, he says.

There you go. There is what this is really about. The Lefties are all up in arms that IRAs and 401Ks are reducing TAX REVENUE.

OH NO THE PEOPLE ARE SQUIRLING AWAY MONEY AT THE EXPENSE OF TAX REVENUE!!!

WE MUST PUT A STOP TO THIS IMMEDIATELY

14 posted on 09/28/2011 6:38:33 PM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: Hoodat
If that 12.4% was invested in an actual retirement fund, every worker in this country would retire as a millionaire.

No kidding. I ran a spread sheet once that showed just how awful the return in Social Security is in comparison to the market.

15 posted on 09/28/2011 6:44:12 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Rusty0604

16 posted on 09/28/2011 6:45:27 PM PDT by Lancey Howard
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To: Rusty0604

Republicans should be screaming about this.


17 posted on 09/28/2011 6:46:03 PM PDT by yup2394871293
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ping


18 posted on 09/28/2011 6:46:09 PM PDT by ponygirl (People are calling our President the Fresh Prince of Bill Ayers; thatÂ’s not allowed is it?)
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To: Pontiac
That is what sucks about these socialist twits like Gale, IMHO Govt Revenue is an Oxymoron, their I said it.

IMHO in order to have "Revenue" you have to produce a good or service that is sold of which you are compensated justly for in the Private Sector.

Their is probably some Accounting Professor here in FR that wants to take me to task so come in the water is fine...

IMHO their is no such thing as Government Revenue it is a transfer payment or a tax, stop trying to sugar coat the meadow muffin...

19 posted on 09/28/2011 6:46:32 PM PDT by taildragger (( Palin / Mulally 2012 ))
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To: Rusty0604

here’s the best thing- the rats want to means test medicare, reduce social security payments for the “rich” and now reduce the amount they can save for retirement...in essence they want to create another class of citizens to welfare status...


20 posted on 09/28/2011 6:47:31 PM PDT by God luvs America (63.5million pay no federal income tax then vote demoKrat)
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To: Perdogg
This would not make it constitutional.

There was a time that statement used to mean something.

21 posted on 09/28/2011 6:47:47 PM PDT by CommieCutter
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To: yup2394871293

You mean like Mitch McConnell. Screaming would work for him, as in “ like a Girl” but he is such a loser that he is incapable of taking on Harry Reid !!!


22 posted on 09/28/2011 6:49:08 PM PDT by Bainbridge
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To: Hoodat
every worker in this country would retire as a millionaire.

But that would be bad for class warfare.

23 posted on 09/28/2011 6:50:25 PM PDT by clintonh8r (Living well is no longer the best revenge. Revenge is the best revenge.)
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To: CommieCutter

Now the 401(K) IRS treatment will be only 18% of income credit???
The annual limit is $15,500.
This affects my state income tax because the 401(K) funds lower my AGI.
More state income taxes forever into the future.

Also, this makes Roth more attractive? It would pay to pay taxes NOW
rather than defer.

That’s what they want. They want the TAX MONEY NOW!!!!

That’s why I upped my contributions. No more tax money for you Obama!!!


24 posted on 09/28/2011 6:53:31 PM PDT by preamble
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To: yup2394871293

Some Republicans wrote a letter to the DOL when they were discussing taking private accounts. I posted it on FR but I can’t find it.


25 posted on 09/28/2011 6:54:13 PM PDT by Rusty0604
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To: yup2394871293

Here we go - the incremental approach to trying to implement the Argentina solution: the nationalization of private retirement savings. Obama and his fellow travelers LOVE the idea. To each according to his needs, from each according to his ability!!


26 posted on 09/28/2011 6:54:30 PM PDT by rockvillem
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To: Rusty0604

How dare people plan for their own future, rather than be dependent on the Government. Such a concept is so selfish and mean spirited, oppressive of the poooor, not to mention raaaacist, sexist, and homophobic. Everyone should give all their income to the Government, and the Government will give them a little to get by on, as long as they worship the Government. (Except for of course the nomentklatura, they work so hard for us proletarian scum).


27 posted on 09/28/2011 6:55:11 PM PDT by Fred Hayek (FUBO, the No Talent Pop Star pResident.)
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To: Hoodat

interesting comment

I paid into the SS system at the “limit” pretty much every year from 66 to 08.

I’ll have to make a spreadsheet and do that calculation.

After which I’ll probably throw up.


28 posted on 09/28/2011 6:55:45 PM PDT by nascarnation
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To: Rusty0604

...........does it apply to a 201(k)..?


29 posted on 09/28/2011 6:58:56 PM PDT by spokeshave (Obama's ratings are so low...Kenyans accuse him of being born in the USA,)
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To: Rusty0604

*


30 posted on 09/28/2011 6:59:33 PM PDT by txmissy
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To: taildragger
stop trying to sugar coat the meadow muffin...

Unfair analogy...to the muffin, that is.

31 posted on 09/28/2011 7:02:20 PM PDT by Aevery_Freeman (How will the Rats keep power? They cheat!)
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To: Rusty0604

“When in the Course of human Events, it becomes necessary ...”


32 posted on 09/28/2011 7:05:54 PM PDT by NonValueAdded (So much stress was put on Bush's Fault that it finally let go, magnitude 6)
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To: nascarnation
Every one of us should make the same calculation as should the government. Then the government should give us the equivalent amount in say land, mineral and other lease rights, buildings, surplus equipment and all the other things that they hold that they have no business holding.

Twofold benefit, people made whole and government reduced: win-win.

33 posted on 09/28/2011 7:08:57 PM PDT by Aevery_Freeman (How will the Rats keep power? They cheat!)
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To: Rusty0604
It looks like one of the major plans is to tax you now, give you a small dog biscuit of a tax credit for saving, and then tax you again on the whole amount when withdrawing it - even the part you already paid tax on. I think I would just skip and keep the money in a normal account and pay capital gains instead of regular income tax. (unless Obama uses a new Buffet tax to wipe out the lower cap gains rate)
34 posted on 09/28/2011 7:13:22 PM PDT by KarlInOhio (Compare "Delay is preferable to error" - Thomas Jefferson // "Pass this bill now!" - Barack Obama)
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To: preamble
This affects my state income tax

That's something that you choose to pay. And your employer is probably paying you a premium to influence that choice.

You always have the option of choosing to NOT pay a state income tax.

35 posted on 09/28/2011 7:13:49 PM PDT by PAR35
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To: Rusty0604
The Kenyan and his Marxist pals stay awake all night thinking up ways to take away YOUR money. How 'bout that "spread the wealth around" bull****?

Anybody see the two "Please Make Me Pay More Taxes" fairies on O'Reilly tonight? ROTFL!!! Those two pixies shouldn't be allowed to have money. A couple of braindead morons. When Bill asked them why they just don't write a check to the Treasury and STFU, they both said they are sending the the difference between what they now pay and what they want to pay to their "charity". Ah yeah! Right! What a hoot. Morons on parade.

36 posted on 09/28/2011 7:23:35 PM PDT by FlingWingFlyer (Barry gives them $535 million and they take "the fifth" when asked where it went.)
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To: Rusty0604
Interesting, but I don't see most of these proposals as all that draconian. For one thing, reducing the maximum that can be contributed by those 50 and older under the "catch-up" provisions of the tax code for 401(k) and IRA accounts isn't all that big a deal. I believe those "catch-up" provisions didn't even exist until a few years ago (2008, maybe?).
37 posted on 09/28/2011 7:24:21 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: PAR35

You always have the option of choosing to NOT pay a state income tax.

I exercised that option moving my business from Minnesota to Texas. Besides, with Dayton looking to increase the taxes on “the rich”, more business is leaving Minnesota.


38 posted on 09/28/2011 7:25:42 PM PDT by Fred Hayek (FUBO, the No Talent Pop Star pResident.)
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To: nascarnation

You won’t like it. The DOW average rate of return on 12.4% investment on auto reinvestment of earnings and losses during that span would be very good. The Dow average in ‘68 was 906.


39 posted on 09/28/2011 7:28:19 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: nascarnation
Consider a person earning $10/hr (in real terms) their entire life without ever getting a promotion. That person loses $215 per month to Social Security taxes. Let's say that person had the option of investing that money instead from age 20 to 65 in a retirement account earning 6%. At age 65, that person quits working and begins to withdraw an amount from that account equivalent to 87.6% of his life-long wage (i.e. the same money he has been accustomed to living off of), then by age 80 that retirement account would have over $1 million sitting in it.

That's for someone making 1.3 times the minimum wage. For someone like yourself, you might have $4 or $5 million saved up.

40 posted on 09/28/2011 7:30:22 PM PDT by Hoodat (Because they do not change, Therefore they do not fear God. -Psalm 55:19-)
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Cashing out in 2008 without messing with it would make you a multi-millionaire over-nite.


41 posted on 09/28/2011 7:31:14 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: Alberta's Child

A lot of people are raising a family when they are young and can’t save a lot. The catch up provision helps people that can finally afford to save more during their last working years.


42 posted on 09/28/2011 7:31:54 PM PDT by Rusty0604
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To: Rusty0604

Just wait till they try to confiscate the gold. AGAIN.


43 posted on 09/28/2011 7:50:46 PM PDT by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: unixfox

I know a lot of people lost all their gold in boating accidents.


44 posted on 09/28/2011 7:53:39 PM PDT by Rusty0604
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To: Rusty0604

Great more certitude under which to make a decision.

This is the problem with political leadership - death by a thousand cuts. You don’t help the patient by cutting slowly and over time.

We need a leader to say ‘Here’s what we’re going to do. It will be painful, but at the end we’ll be stronger and better for it.’ Get it over with already - take the losses and let’s move on.


45 posted on 09/28/2011 7:53:55 PM PDT by 1010RD (First, Do No Harm)
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To: Toddsterpatriot

Post it.


46 posted on 09/28/2011 7:57:37 PM PDT by 1010RD (First, Do No Harm)
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To: Aevery_Freeman
Every one of us should make the same calculation as should the government. Then the government should give us the equivalent amount in say land, mineral and other lease rights, buildings, surplus equipment and all the other things that they hold that they have no business holding.

Outstanding idea.

47 posted on 09/28/2011 8:06:05 PM PDT by 1010RD (First, Do No Harm)
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To: Rusty0604

Let me cash out and pay a flat 15% tax on the sum (and NO penalties) and I’d be out of my employer sponsored 401k in a heartbeat.


48 posted on 09/28/2011 8:20:09 PM PDT by RockyMtnMan
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To: Rusty0604

Understood. I’m not saying the catch-up provision is a bad idea. I’m just pointing out that a modification of this provision is hardly a draconian overhaul of the 401(k) rules, when you consider that it didn’t even exist until a few years ago.


49 posted on 09/28/2011 8:21:23 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: Alberta's Child
For one thing, reducing the maximum that can be contributed by those 50 and older under the "catch-up" provisions of the tax code for 401(k) and IRA accounts isn't all that big a deal.

I'm pretty sure that it is that big a deal if you happen to be 50 or over and need to catch up on your contributions to your retirement savings. This is how smart government confiscation of private savings goes - small increments and focused targeting that leaves your neighbor saying he doesn't think it's all that big a deal.
50 posted on 09/28/2011 8:27:37 PM PDT by AnotherUnixGeek
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