Even THREATEN to tax my 401(k) and I will abandon the program, take the tax hit, and find another private avenue of accumulating wealth for retirement.
And I won’t be alone. By the time the democrats get there, there will be George Bailey’s $1 in the lock box and nothing more.
I don’t cotton much to bait and switch.
What they are considering is lowering the maximum allowed contribution. It's currently $16,500/year, with an additional $5,500 if you are over 50. You simply won't be able to contribute as much in the future.
The claim is that it primarily benefits the "rich". The problem is: that's peanuts to the "rich". What's really happening is that the upper middle class (like me) is socking away as much as possible in preparation for retirement, with the expectation that Social Security is going to be "means-tested" out of existence for me.
Tax hit plus 10% penalty if you are not yet 59 1/2 years old yet.
You’re assuming they’ll let you do that. Never underestimate the greed of Government.
Done - and haven't looked back. Also - does anyone know what the tax rate will be on those withdrawals ten years from now? Nope.
Excellent, you get it. Now I want you to think about this. When they do these things, the taxes and fees and all the claims against YOUR money are prolly gonna be retroactive so I'm getting mine out NOW, before it's likely that they pass the law. Dunno yet where the hell I'm going to put all the money because I dont believe in the stock market as it exists any more.