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Keep Both Eyes On Your Retirement Funds As Fiscal Cliff Nears
Personal Liberty Digest ^ | November 21, 2012 | Bob Livingston

Posted on 11/21/2012 6:51:24 AM PST by Tolerance Sucks Rocks

Americans hold about $17.9 trillion in retirement assets. These are found in the form of 401(k)s, individual retirement accounts and pension funds.

That money is not your own. If it were, you would be able to access it without penalty. But that is not the case. Taxes and onerous fees are tacked on if you take the money when you need it as opposed to when your “benevolent” government masters believe you should have it.

Congress established retirement programs like IRAs and 401(k)s in order to prop up the stock markets for the big banksters and make themselves look good. Americans have been fooled into equating a rising stock market with improving economic conditions. But when it’s propped up under false pretenses (by driving money into the market that would ordinarily be used elsewhere or through massive infusions of fiat currency via bailouts), it is like fool’s gold.

And now some are eyeing those funds as a big piggy bank to rob in order to pay off the “national debt.” Never mind that U.S. debt is a world-class delusion, as I have told you many times.

This actually began long ago. I first wrote about it here in 2009. That’s when Congressional Democrats were holding hearings to discuss the possibility that those funds could be confiscated and placed into universal guaranteed retirement accounts managed by the Social Security Administration. Their belief is that if the money is put into Treasuries, it would undo much of the money-printing damage done by the Alan Greenspan/Ben Bernanke Feds.

More hearings on this subject were held in 2010. They were presided over by J. Mark Iwry, senior adviser to the Secretary of the Treasury and deputy assistant secretary for retirement and health policy. Irwy believes 401(k)s and IRAs are unfair because they benefit the rich. But the plan to “nationalize” retirement plans was put on hold following the 2010 election. Unions are big advocates of a nationalized retirement system.

Now the topic is back on the table. As Congress searches for creative ways to feed the ever-growing Federal leviathan, that $17.9 trillion becomes an enticing option. America’s national debt stands at $16.3 trillion. The fiscal cliff, comprised of a huge year-end tax increase and $110 billion in cuts to Federal spending, is dead ahead; and the 1 percent (the sociopaths in government) is looking for ways to avoid the cliff that don’t involve making significant cuts to Federal spending.

There is precedence for government confiscating the retirement funds of its citizens, so keep your eye on upcoming Congressional negotiations. A $17.9 trillion piggy bank plus $16.3 trillion debt equals a marriage that could be consummated in hell — or Congress, which is almost the same thing.


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: 401k; fiscalcliff; ira; theft

1 posted on 11/21/2012 6:51:31 AM PST by Tolerance Sucks Rocks
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To: 3D-JOY; abner; Abundy; AGreatPer; Albion Wilde; AliVeritas; alisasny; ALlRightAllTheTime; ...

PING!


2 posted on 11/21/2012 6:52:07 AM PST by Tolerance Sucks Rocks (Obama should change his campaign slogan to "Yes, we am!" Sounds as stupid as his administration is.)
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To: Tolerance Sucks Rocks

Been saying this for a while now....

Obama wants that money...


3 posted on 11/21/2012 6:53:21 AM PST by Rightly Biased (Avenge me Girls AVENEGE ME!!!! ( I don't have any son's))
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To: Tolerance Sucks Rocks

I turned my 401k to as much cash as I could. I figure that is safer for the fiscal cliff and if I need to withdraw it all and get the heck out of dodge.


4 posted on 11/21/2012 6:53:48 AM PST by jrestrepo (See you all in Galt's gulch)
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To: jrestrepo

Did you just take the 40% penalty?

I am really considering doing this but damn 40%??


5 posted on 11/21/2012 6:55:16 AM PST by Rightly Biased (Avenge me Girls AVENEGE ME!!!! ( I don't have any son's))
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To: Tolerance Sucks Rocks
On Mondays, Wednesdays and Fridays I believe that the government is looking for a way to steal the assets of retirement accounts. On Tuesdays, Thursdays and Saturdays I believe that such rumors are fostered by the government to convince people to stop deposits and make early withdrawals to boost this year's taxable income.
6 posted on 11/21/2012 6:56:22 AM PST by KarlInOhio (Big Bird is a brood parasite: laid in our nest 43 years ago and we are still feeding him.)
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To: Rightly Biased

...and I’ve been saying this for a while. If the government confiscates our life’s savings it will constitute the first shot fired in the next Revolution.


7 posted on 11/21/2012 6:56:34 AM PST by pgkdan (We are witnessing the modern sack of Rome. The barbarians have taken over.)
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To: Tolerance Sucks Rocks

What will the gov. do, try to put a tax on each fund owned by a individual? Will it be a massive tax or a small tax? Will the tax be every year or a one time thing on the 401 K or IRA when a person goes to cash the fund out? What percentage would the tax be to the fund. I mean are we talking about 50% of the fund or what?


8 posted on 11/21/2012 6:59:13 AM PST by classified
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To: Tolerance Sucks Rocks
"Irwy believes 401(k)s and IRAs are unfair because they benefit the rich."

Well we can't have people being responsible with their savings and planning well for their retirement....that would simply be un-liberal!

We's all gots to emulate this...

Get you free OBAMAPHONE!

9 posted on 11/21/2012 6:59:19 AM PST by wesagain (The God (Elohim) of Abraham, Isaac and Jacob is the One True GOD.)
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To: Rightly Biased

I liquidated most of it but I have not withdrawn it yet. I am waiting for the proverbial show to drop before I do that. If the shoe were to drop, I hear Costa Rica is nice year round.


10 posted on 11/21/2012 7:00:36 AM PST by jrestrepo (See you all in Galt's gulch)
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To: classified
If I had to bet on it I would say that they will claim that people are taking too many risks with their 401ks and need a required safer option. Thus in order to maintain the tax deductibility, participants will have to keep a "small" amount in government bonds. It will start off around 10% and quickly climb to near 100%. You'll still own your retirement account - but you'll just have to let the government use it until you retire. Also jack up the penalty well above the current 10% if you try to escape and maybe even make 401k participation mandatory.
11 posted on 11/21/2012 7:04:26 AM PST by KarlInOhio (Big Bird is a brood parasite: laid in our nest 43 years ago and we are still feeding him.)
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To: Tolerance Sucks Rocks

Can’t have my retirement accounts. Try it and they WILL bleed for it...


12 posted on 11/21/2012 7:07:58 AM PST by Dead Corpse (I will not comply.)
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To: pgkdan

This slow compression of freedom and confiscation by government is going to cause a major explosion...only a matter of time as they keep pushing and pushing.


13 posted on 11/21/2012 7:09:22 AM PST by AngelesCrestHighway
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To: Rightly Biased

I thought the penalty was 10% (plus taxes, of course)


14 posted on 11/21/2012 7:11:53 AM PST by chrisser (Starve the Monkeys!)
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To: KarlInOhio

Many 401k’s are already removing the “cash option”.
They long ago removed your ability to roll out your 401k into your own plan while you’re still with the same employer.
Usually, the next “safest” option is heavy in gov’t treasuries.

This is a de facto takeover of 401k plans, albeit “voluntary” on the part of the person whose name is on it.


15 posted on 11/21/2012 7:13:51 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: chrisser

10% penalty (confiscation) + the withdrawal is taxed as income for the year.

I don’t think you can even do this with a 401, only with an IRA.

And, another twist, if you’re thinking of “borrowing” from your IRA - can’t do it. This is only available from your 401, and the payback plan guarantees you can’t harbor it out of the system with a “slow payback”.


16 posted on 11/21/2012 7:16:10 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: Tolerance Sucks Rocks

We are already a socialist country. We like to keep the illusion that we are a free-market country where you get to work and to keep the fruits of your labor. We’re not. You work and government takes more than you get to keep. You only think that you own property. You don’t. The government slices off a percentage each year in what they call the “property tax.”

We’re already there. Many many thanks to all the a$$whole$ who voted democrat!


17 posted on 11/21/2012 7:24:27 AM PST by I want the USA back
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To: Dead Corpse

This will indeed start the shootin


18 posted on 11/21/2012 7:24:33 AM PST by 2nd Bn, 11th Mar (The "p" in Democrat stands for patriotism.)
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To: MrB

You can take out a 401(k) early, if you pay the penalty.

The penalty can be avoided under some hardship circumstances, but the taxes cannot (and they’re at your highest bracket for the year, whatever that happens to be).

I’ve always been curious where the penalty money goes, other than the obvious “black hole” of the general fund.


19 posted on 11/21/2012 7:27:47 AM PST by chrisser (Starve the Monkeys!)
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To: Tolerance Sucks Rocks

Touch my 401k and I pick up a gun. Clear enough, Washington?


20 posted on 11/21/2012 7:37:08 AM PST by andy58-in-nh (Cogito, ergo armatum sum.)
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To: wesagain

“Well we can’t have people being responsible with their savings and planning well for their retirement....that would simply be un-liberal!”

It’s all about “fairness” If I hear that term again I’m going to gouge someones eyes out.It pains me that hard work, responsibility, and preparation for the future is evil and unfair to the lazy grasshoppers


21 posted on 11/21/2012 8:45:15 AM PST by Figment
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To: Figment
It’s all about “fairness"?...
22 posted on 11/21/2012 9:33:51 AM PST by AngelesCrestHighway
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To: chrisser

yeah that’s were I get the big number from..

taking it out eats most of it up.


23 posted on 11/21/2012 12:41:12 PM PST by Rightly Biased (Avenge me Girls AVENEGE ME!!!! ( I don't have any son's))
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To: KarlInOhio

We think alike here.

I’ve been thinking if Uncle Sham is bluffing, they win when you have most of the populace now with no savings and dependent on FedGuvInc in their old age.

No point in saving in a traditional bank account or CD since Uncle Sham is keeping interest rates artificially low.


24 posted on 11/29/2012 10:51:27 AM PST by TurboZamboni (Looting the future to bribe the present)
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To: andy58-in-nh

Ghilarducci

25 posted on 11/29/2012 10:54:39 AM PST by TurboZamboni (Looting the future to bribe the present)
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To: TurboZamboni

Just another thieving Communist to lay the crosshairs over.


26 posted on 11/29/2012 12:48:17 PM PST by andy58-in-nh (Cogito, ergo armatum sum.)
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To: Tolerance Sucks Rocks
Congress established retirement programs like IRAs and 401(k)s in order to prop up the stock markets for the big banksters and make themselves look good.

Except you can keep your money in a money market fund instead of a stock market investment.

It's not really a big deal to me if the government removes the tax deferment on the 401K. It gets taxed when I withdraw it in retirement anyway so this is just moving that up instead of delaying it. In essence that would be the government deciding to take their tax money now instead of saving it for the future. But given the debt situation, it doesn't make sense for the government to in effect "save" that tax revenue for a rainy day. It's already raining.

In truth, it might be better financially if the government taxes that money now instead of later. If taxes are higher later upon withdrawal, or I'm in a higher tax bracket later, I would save more money by being taxed now instead of later.

The whole idea of confiscating the money, taxing it at a higher rate, or setting up a new mandatory retirement on top of social security is hideous though. Social security is as financially obsolete a program as any that currently exist in this country. It needs to be abolished and we need the freedom to invest our own money our own way.

27 posted on 11/29/2012 1:33:00 PM PST by JediJones (Newt Gingrich warned us that the "King of Bain" was unelectable. Did you listen?)
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