Your Tax-Free Nest Egg May Not Be Tax-Free After All

IBD Editorials ^ | April 23, 2012

[dinodino]

Damn thieves in Washington up to no good again.

[Libloather]

The genius of this is that you pay tax on the money when you retire and you have very little tax deductions (no mortgage interest) so your tax rate goes UP!

And what will the tax rate be 15 to 20 years from now? No one knows.

[Graybeard58]

insurance proceeds are not taxable as they are not income, for now.

Those words, "for now", needed some emphasis.

[scooby321]

And what will the tax rate be 15 to 20 years from now? No one knows.

85%

[ken5050]

This is a Dem idea..and DOA. It will never pass the House

[dfwgator]

It will trigger Civil War II.

[traditional1]

Start taxing welfare benefits, EBT’s, food stamps-as-income, etc., etc., instead of trying to buy all those tribal parasite votes with “Whitey’s Money”.

[funfan]

Yes. Why would you still invest in them if you are going to be taxed on it from the get go.

[PGR88]

The Government's REAL thoughts were

OK worker bees - we'll let you work hard and collect some honey into your hives. Once we need it, we will take it.

[TurboZamboni]

Golden Rule- those who make the rules, get your gold.

I’d not be surprised if the Roth suddenly becomes taxable ,too.

[microgood]

The Post also interviewed Urban-Brookings Tax Policy Center co-director William Gale, whose idea of replacing all tax deductions on 401(k)s and IRAs with an 18% credit sent straight into everyone's retirement account is also being considered within Congress.

This statement makes absolutely no sense to me. Does this mean the government gives me a check for 18% of my income?

[TurboZamboni]

Laura D’Andrea Tyson is an economic adviser to Obama. She served in the Clinton Administration where she authored an idea to tax Employer Contributions to 401k’s as current income and a retroactive tax of 15% on 401k’s to make up for them not being taxed in the first place. Read “Mrs. Tyson’s Fried Economics” in National Review 1993.

“No Man’s life, liberty, or property is safe while Congress is in session.”....Mark Twain

[aMorePerfectUnion]

For IRAs it’s probably time to buy out your LOUSY, non-contributing partner by converting to a Roth...

[webheart]

They are not really interested in taxing the funds. We should be relieved if all they wanted was to tax them, and we would gladly pay those taxes. They want the funds themselves. They will take all private retirement accounts, and roll them into Social Security, and then dole them back out at an alarmingly low rate. This is necessary, because it isn’t fair that people who make sacrifices and save their money should have more money then people who don’t save. 51% of the voters agree with them, and besides, it will help save Social Security for everyone. Aren’t you happy for that?

[Sacajaweau]

I have an account with Bank of Mattress. I jumped on it last spring and got a real bounce out of it. Solved all my tax problems.

[Whenifhow]

The first thread is from Sunday

Feds eye retirement-fund tax to cut $16 trillion-plus deficit (Obama’s war on savers)

http://www.freerepublic.com/focus/f-news/2875052/posts

Fox: Government considering adding taxes 401Ks

http://www.freerepublic.com/focus/f-news/2875401/posts

Congress Coming After Your Retirement Savings Next?

http://video.foxbusiness.com/v/1579478247001/congress-coming-after-your-retirement-savings-next

Is Your Retirement Savings Safe From Uncle Sam?

http://video.foxbusiness.com/v/1579478250001/is-your-retirement-savings-safe-from-uncle-sam

[RedMDer]

[webstersII]

“It will trigger Civil War II.”

Not likely.

There is lots of money in those accounts, but there are not that many people who have a significant amount of money in those accounts.

The majority of people in the US would think it was a great idea to soak the rich some more.

[cherry]

if you can, give them money now, not later...or buy a house with the purpose of bestowing it to them...

they're screwing all the workers by now taking our legacies from us....

years of doing without, not going on huge vacations, and not running up credit cards so you could have all the newest toys and gadgets and cars...

and for what?....so now your little pittance of savings can be obscounded with...

[Chgogal]

That would really depend on your income bracket now vs. what your projected income bracket would be from income garnered from your IRA nest egg that you can delay until 70.5 years of age.