Feds eye your 401k.

#2
#2
I should have never read this ,I'm gonna puke.....when are they gonna stop?
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#4
#4
Sorry, we can't have you people building up those retirement funds. We need that jack.
 
#5
#5
can't have people taking care of themselves, we need to go on another $1,000,000 trip to Vegas on your dime
 
#6
#6
“Unlike the current system,” Gale told Congress, “workers’ and firms’ contributions to employer-based 401(k) accounts would no longer be excluded from income and would be subject to taxation, contributions to IRAs would no longer be tax-deductible and any contributions to a 401(k) plan would be treated as taxable income.”

In other words, the employee and employer would no longer get a deduction under the Gale plan, they would qualify for a credit. And the credit would “increase [government] revenues by about $458 billion,” Gale says.
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If it is a dollar for dollar tax credit, it would nearly reduce my taxes next year to about $5000. :unsure:

I would have to see more info on this, but I'm sure they are going to add some other form with a work sheet. And I'm sure that it will not be a dollar for dollar credit. In other words, for every dollar I contribute to my 401(k), they reduce my tax amount by that much.

And how will this play out with the alternative minimum?
 
#8
#8
Ooops... right above that...

Another proposal being discussed in Congress says all tax deductions on 401(k)s and IRAs to be replaced with an 18 percent credit. The credit, according to a proposal that has been endorsed by economist William Gale, would be placed directly in a person’s retirement account.
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How is this going to work? Can someone explain this better? Is this saying that 18% of what you contribute to your 401(k) will be the amount of your tax credit? And what is this crap at the end about "it" being placed in a person’s retirement account? What is "it"? Is it that same tax credit amount?

I'm confused.
 
#11
#11
I'll say this, if you want to really get us lazy Americans off the couch and in the streets, this is the exact recipe to do it. They've already got Social Security in peril of not being financially solvent in a few years. Now you have these guys brainstorming this idea.
 
#14
#14
They are killing the incentive to use the 401k.

I know people now who dont invest in their 401k because they believe the tax rate they pay now will be lower then the tax rate they will pay in 20 or 30 years because of increased govt spending and the taxes that go along with it.

Now this? Why not take the tax hit now. Instead of waiting 25 30 years and finding out the nominal tax rate is 40% instead of the 30 odd % it is now.
 
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#15
#15
relax guys, this is only going to affect millionaires and billionaires. They're rich and can afford to pay a little more in taxes.

it's only fair...
 
#17
#17
You are all incredibly naive if you think this is real. It isn't.

It is a common practice to either a) take some proposal by some obscure outfit and say "Congress is considering this" when they really aren't and/or b) have some outlandish suggestion like this made so you can hoist it up as a cover to do what you really want to do.

Notice that in the article the source of the idea is only "a commission." What commission? Who is on it? What is this really about?

I tried to find any data on it, and could not with basic Google searches. It is not a serious proposal and it is not getting serious attention.
 
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#18
#18
lawgator1 said:
You are all incredibly naive if you think this is real. It isn't.

It is a common practice to either a) take some proposal by some obscure outfit and say "Congress is considering this" when they really aren't and/or b) have some outlandish suggestion like this made so you can hoist it up as a cover to do what you really want to do.

Notice that in the article the source of the idea is only "a commission." What commission? Who is on it? What is this really about?

I tried to find any data on it, and could not with basic Google searches. It is not a serious proposal and it is not getting serious attention.
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You are equally naive if you really think politicians haven't considered changing tax law on 401k's. They wouldn't be dumb enough to do it before an election though.
 
#20
#20
theFallGuy said:
Congress takes aim at 401(k)s | Bankrate.com

it's something that has been discussed before
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Well, this article is far less incendiary in its content, but appears to be talking about the same "commission." Seems like there are distinctions being considered as between tax deferred, and tax preferred, changing limits, or making returns taxable as though they were typical capital gains held on private stock, i.e. 15 %.

Hardly just some blunt instrument swipe at all $18 trillion and making it all taxable tomorrow, which is the misleading nature of the NY Post rendition of the story.
 
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#21
#21
But I guess it is OK for BHO to say that some of the Obamacare ideas are those of the GOP, when in fact the ideas were just kicked around in a think tank and never even put in the form of a recomendation much less a bill.
 
#22
#22
T-TownVol said:
But I guess it is OK for BHO to say that some of the Obamacare ideas are those of the GOP, when in fact the ideas were just kicked around in a think tank and never even put in the form of a recomendation much less a bill.
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Not so much GOP ideas (except for Romney of course, who has clearly supported it in the past, including at the federal level, until it hurt him to do so); wasn't it from the Heritage Foundation or some similar conservative think tank?

Once again, I am baffled by the GOP position on this. The individual mandate spreads the cost of health care across a larger swath of health care users. It reduces the burden placed on paying customers, insure or direct private pay, by reducing the number of uninsured who get their care for free.

It is a mechanism by which people, who currently don't pay anything, pay for health insurance, thereby evening out the burden and increasing personal responsibility.
 
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#24
#24
lawgator1 said:
Hardly just some blunt instrument swipe at all $18 trillion and making it all taxable tomorrow, which is the misleading nature of the NY Post rendition of the story.
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No wonder you like Obama so much - you use the strawman as much as he does.

No where in the article did it suggest what you write above. The message was that Congress is looking at ways to extract tax revenues from people's retirement funds.
 
#25
#25
lawgator1 said:
Not so much GOP ideas (except for Romney of course, who has clearly supported it in the past, including at the federal level, until it hurt him to do so); wasn't it from the Heritage Foundation or some similar conservative think tank?

Once again, I am baffled by the GOP position on this. The individual mandate spreads the cost of health care across a larger swath of health care users. It reduces the burden placed on paying customers, insure or direct private pay, by reducing the number of uninsured who get their care for free.

It is a mechanism by which people, who currently don't pay anything, pay for health insurance, thereby evening out the burden and increasing personal responsibility.
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total horse shat....there is no way that an educated person can believe that ANYTHING the government runs will reduce costs for ANYONE (except the free loaders of course).......the CBO has already doubled the original cost estimates and the plan is not even in effect......the reason that private insurance costs keep climbing is because of government mandates......if you believe that the government can run ANYTHING better than private then you are an idiot sir
 
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