Skip to comments.Obama Budget to Cap Retirement Accounts at $3 Million
Posted on 04/05/2013 6:32:16 PM PDT by Sir Napsalot
The budget President Barack Obama will submit on April 10 will contain a proposal that would prohibit individuals from accumulating more than $3 million in Individual Retirement Accounts (IRAs) and tax-preferred retirement accounts.
According to a White House statement, the Obama administration believes the current rules allow some wealthy individuals "to accumulate many millions of dollars in these accounts, substantially more than is needed to fund reasonable levels of retirement saving."
"The budget would limit an individuals total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million in 2013," the statement said. "This proposal would raise $9 billion over 10 years."
(Excerpt) Read more at breitbart.com ...
I can't figure out why "rich" people would want to keep their money anywhere near where the scumbag government pigs can get their filthy paws on it. This Ubama initiative is like telling them flat out, "Get your money to safety NOW."
Soon it will be seen as patriotic to kill your self. Go nobama, eh?
We saw this coming. While we have very healthy 401K balances and had always saved the max, and still do, we bought single family homes at rock bottom and rent them out $1500 per month.
A 60K house off a short sale returns $13,000 in gross yearly revenue. That’s around 20% return on my money vs a quarter of a point in the bank? I’ve bought six of them. All in my neighborhood and one next door. If Ted Kennedy can have a compound, so can I.
I suspect something got lost in the translation here. It refers to 205,000 per year, which is the current maximum benefit in a defined benefit pension plan. Under current law, this amount gets indexed for inflation each year. They might be talking about freezing the limit. There would be a lot of unintended consequences, just like the last time they played with the limit, and the time before that, and the time before that.
With todays interest rates on simple deposit investment, it would take a hell of a lot more than 3 million to create a $205,000 per year return. We are talking in the 7% range, not one quarter of 1%.
My employer still matches my contributions to my 401K. I wonder how long until those who don’t save in my workplace complain of the economic injustice I unfairly get because they don’t save anything?
“Not a chance, this type of neglect is deliberate.”
This is not neglect. This is active destruction.
“Where does this Kenyan piggy get the authority to do this. This is BS.”
It’s what he “wants,” not what he’s going to “get.” The budget has to pass both houses of Congress.
Sorry effing bastard. None of their damn business how much somebody saves.
I’d like to know how $3mm is supposed to generate an annuity of any where close to $200k per year in this investment climate with any certainty over a 30+ year retirement.
Flat annuity maybe but in 30 years it would be worth the equivalent of $82k per year now.
These aren’t fools, they are liars and thieves. They are evil bastards.
The big eared prick will get a retirement paid by us that is at least twice what he thinks is “reasonable”.
I can’t write anymore without getting in trouble.
>>> Sorry effing bastard. None of their damn business how much somebody saves.
Of course it is their damn business to know exactly how much you have.
It is all theirs, they just need to figure out how to break it to you.
>> This Ubama initiative ...
It’s a populist gimmick that serves at least 3 objectives: 1) spur the class warfare for self-preservation, 2) the same for 2014, and 3) seed the notion that it’s acceptable to steal.
He’s a dick.
There should only be investment accounts. And cap gains (long or short) should be taxed at 0%, as should dividends.
And of course, once its established that the government can limit how much you can save for retirement, the actual number is just a minor detail.
You are going to upset a lot of people.
You just descibed a Roth IRA.
You and me both!
tick tick tick...the clock gets ready to hit zero on the Rev II time clock.
Oh man, what were we thinking?
It’s a good thing we have Lord and Savior Barack Obama always looking out for us. If not for him, a bunch of us would have been earning way too much money during our retirement years.
That was close.
The retirement income for life that will be given to Obama is currently $191,000. That won’t leave him much room for any income from IRAs and such, since he will of course want to keep his income below this $205,000 figure.
The most abused word in the English language and it's intentional.
That’s what I was thinking about when I read this. There are a lot of CA public employees that get more than $205,000 a year in retirement, which Obama thinks is “enough”. Are they going to limit them too?
I suspect the answer is that they will get a "waiver"....
I have been ashamed of my country for a long time now. I have been ashamed of the men who lead the military that I once served in. I am about to head to the funeral this morning of a dear and beloved gentleman at my church. He was 88 years old and a 25 year military man. He was simply an outstanding person and we will all miss him. He was very down about what has happened too the military. He could not understand why the military leadership was allowing this garbage to happen. It would only take the leadership to stand as one and say enough is enough. While we take orders from the civilian leadership of the nation, we are not going to be used and abused and then tossed aside as roadkill. It simply is sickening what America has become. Sadly, there is no place on earth to get away from the garbage of this lost and dying world. Only through the Lord will you escape. My beloved friend whom we have just lost is now with the Lord and in a better place. I can only hope that soon all those who believe in the Lord will be there also.
Someone in Europe did! I read about it a few weeks ago.
I used to be an administrator for a 401K. I was required to perform a discrimination test to make sure that highly compensated employees didn’t save more than the rest, even though there is a cap on how much you can save already.
Never apply for a job you don’t want and never start a fight you can’t win decisively.
Not enough will fight to win. Now it would only be a battle of principles worth dying for.
Legally he doesn’t have any authority to do this, but the laws haven’t stopped him yet. Neither have the repubs so as long as he wants to flaunt the law, he can.
Silver lining here is that there is always a loophole designed for the ruling class. Find out where they are hiding their money and follow suit.
You may be right about that at least until they get to taking everything from everybody. I’ve seen stats that say during Rev 1 only 30% supported independence while 30% were Torries and the rest were uncommitted. I sense that is pretty much the same today with perhaps even less wanting their freedoms back and perhaps more supporting the governments march against those freedoms.
how is the federal budget going to do that?
wouldn’t that be a law?
If obama needs a new law, Congress will only be too happy to oblige.
>>> how is the federal budget going to do that? wouldnt that be a law?
Law or no law, Obama regime had been operating illegally ever since ....
Who can take seriously an article written by someone who doesn’t know what a tax-deferred savings account is?
It is correct — I checked with the accountant/Mrs.
“Tax-preferred” encompasses “tax-deferred” AS WELL AS accounts with OTHER types of tax incentivization (type THAT three times fast).
It’s accounting-geek cant.
Peet (who always wanted to use “cant” in a sentence)
Okay on that line of Odumb@$$ reasoning
- All Presidents must only go one vacation per four years and that is for 1 week..
- all presidents can only golf 1 time per year
- all presidents salaries are limited to $50,000.00 a year
- no secret service detail.
- all presidents who write any book prior to becoming president and after becoming president the profits of the book are taxable at 100%
The criminal gang now ruining this country steal more than that every day.
Thanks Sir Napsalot.
it's been done... Nice touch to put the cover under the "DO NOT REMOVE UNDER PENALTY OF DEATH" label
This is pure class envy. All funds in an IRA are eventually taxed as ordinary income as a result of “required minimum distributions”. The more $$$ you have in your IRA the more you have to withdraw after age 70. And you pay tax on the withdrawal. When you die your heirs continue it.
Yes, and next comes the Obama confiscation.
Some one should shut this liberal fascist down before he has the country up in arms.
Please, please, please...the only way this whole discussion makes sense is in the context of our manipulative income tax system. Otherwise, we tax when we buy, and then we own whatever we've just bought.
Get rid of the income tax. Rid us of the 16th amendment.
[Proposed 1909; Questionably Ratified 1913]
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
When they imposed universal suffrage by Constitutional ammendment and let morons vote, thiis was sure to follow.
There is no Constitution anymore, the political class in DC can imose anything they want on the productive class and the people that shouldn’t have been enfranchised in the first place are cheering them on
The Federal government spends $9 billion every 21 hours.
“While we have very healthy 401K balances and had always saved the max, and still do, we bought single family homes at rock bottom and rent them out $1500 per month.
A 60K house off a short sale returns $13,000 in gross yearly revenue. Thats around 20% return on my money vs a quarter of a point in the bank? Ive bought six of them. All in my neighborhood and one next door. If Ted Kennedy can have a compound, so can I.”
Having all of your eggs in one basket (at least in terms of property) is risky; here in NJ they’d get their pound of flesh from you in property taxes. There is only so much you can charge in rents (especially in a dying state), and you pay them regardless of whether or not you have a tenant. Section 8 tenants anywhere near your compound can make a $60K house into a $10K house fairly quickly (see Detroit).
Funny, I don’t recall the little marxist talking bout this during the campaign /sarc
This was precisely my initial reaction. Atlas Shrugged prophecy is realized daily during the Obama regime.
This is just a start folks. This will creep down into the middle class sooner than later. The government will not let trillions of dollars in IRAs & 401ks go untaxed. I just purchased a property that will yeild me 36k a year in rent. Did NOT want to become a landlord again (been there done that) but this was the only way to cover my you know what.
I want to, once again, thank the dumb masses that reelected this loser.
What is “reasonable” for perhaps 50 years of retirement when massive inflation kicks in? 3 mil aint much at all. This clown is a POS.
“YOU DIDN’T SAVE THAT”
BINGO! I have some questions also
1. is this indexed for inflation?
2. what authority does Obama have to do this? It seems like a measure for the House to legislate.