Feds eye your 401k.

#51
#51
Wow, will the class warfare ever stop with these guys?

3 mil set aside for retirement is not exactly rich.
 
#52
#52
it also just changed the definition of "rich" yet again

could finance an annuity of $205,000 per year in retirement
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why should the fed govt be able to tell a citizen what they can use per year in retirement?
 
#55
#55
Pepe_Silvia said:
And how is letting somebody keep their money a government subsidy?
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I think they're claiming it is since the savings are tax-deferred

the ability to save and invest is evidently limited to only the wealthy among us. Equal outcomes and all that stuff
 
#56
#56
Obama’s budget plan, to be unveiled April 10, would prohibit taxpayers from accumulating more than $3 million in an individual retirement account.
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So does this mean that if sombody has $9 mil they could spread it out over 3 separate accounts and be exempt?
 
#57
#57
But in theory, "the logic of such a proposal makes sense: We want to encourage people to save for retirement but that should not be open-ended. Rich folks don't need government subsidies to encourage and enable them to save for retirement," said Roberton Williams of the Tax Policy Center.
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Amazing this doesn't bother more people.

The government knows what is best and how you ought to live your life. They can save your money better than you can. They can spend your money better than you can.

Of course, forcefully spending your hard-earned money on them securing the maximum amount of votes to stay in power (and gain wealth after office) is most important.
 
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#58
#58
they are also trying to define exactly how long you are allowed to be retired. If you are retired for longer than 15 years then their math begins to fail. Of course by then you can just fall back on the govt and their plan works out fine

you would think the govt would welcome fewer people on their rolls as I'm pretty sure the future isn't so bright for many govt programs
 
#59
#59
utvolpj said:
they are also trying to define exactly how long you are allowed to be retired. If you are retired for longer than 15 years then their math begins to fail. Of course by then you can just fall back on the govt and their plan works out fine

you would think the govt would welcome fewer people on their rolls as I'm pretty sure the future isn't so bright for many govt programs
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One would think. I would give up SS in a heartbeat if they would leave my 401K alone and let me keep all of it.
 
#60
#60
rjd970 said:
One would think. I would give up SS in a heartbeat if they would leave my 401K alone and let me keep all of it.
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Don't know your age but you may have already given up your ss and just don't know it yet
 
#61
#61
Obsessed said:
Don't know your age but you may have already given up your ss and just don't know it yet
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I believe he's saying they can keep everything he's put in up to this point if he is allowed to divert any future contributions into a private account. I would be a huge fan of that idea
 
#62
#62
utvolpj said:
I believe he's saying they can keep everything he's put in up to this point if he is allowed to divert any future contributions into a private account. I would be a huge fan of that idea
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As I as well. And the money he's contributed at this point is gone anyway. The only way any of us younger ones see it is when our kids start paying in to it
 
#63
#63
utvolpj said:
I believe he's saying they can keep everything he's put in up to this point if he is allowed to divert any future contributions into a private account. I would be a huge fan of that idea
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I would be as well. I'd happily forego any social security in the future if I could keep what I earn now. They can keep what I've paid already.

But democrats would never let that happen.
 
#64
#64
utvolpj said:
they are also trying to define exactly how long you are allowed to be retired. If you are retired for longer than 15 years then their math begins to fail. Of course by then you can just fall back on the govt and their plan works out fine

you would think the govt would welcome fewer people on their rolls as I'm pretty sure the future isn't so bright for many govt programs
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Let me start off my post by saying do not misinterpret the rest of my post as meaning that I'm in favor of Obama's proposal. I most definitely am not in favor of it.

However, your statement that the math begins to fail if someone is retired for longer than 15 years is inaccurate because you are ignoring the fact that the portfolio would presumably be earning some type of return on investment during the retirement period.
 
#65
#65
Vol423 said:
Let me start off my post by saying do not misinterpret the rest of my post as meaning that I'm in favor of Obama's proposal. I most definitely am not in favor of it.

However, your statement that the math begins to fail if someone is retired for longer than 15 years is inaccurate because you are ignoring the fact that the portfolio would presumably be earning some type of return on investment during the retirement period.
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ah you're right, I did kinda ignore that. I would ask what return they used to calculate the $205k figure and how many years a person is estimated to be retired

Also, are you taxed every time is goes over $3mil? Having to keep track of all that seems like a nightmare that would cut into any savings
 
#66
#66
utvolpj said:
I believe he's saying they can keep everything he's put in up to this point if he is allowed to divert any future contributions into a private account. I would be a huge fan of that idea
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Correct. Sadly I don't see this ever happening.
 
#67
#67
They want you to be poor. They have no intent of cutting costs. If you think they are too stupid to know how to cut costs then you are misinformed. This is intentional and it's disgusting.
 
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#69
#69
Speaking towards the frightening implications of the Cyprus banking collapse, Jim said that, “It’s been condoned [now] by the IMF, the European union, and everybody else in sight; that a government in need, can take assets. We all knew they could tax us…but this is the first time that I’m aware of, that they’ve gone in and taken bank accounts. They took gold from people in the U.S. in the 1930′s…but I’ve never heard of them taking bank accounts. [Now] they’re doing it. So be careful [because], now they can take your bank account under this precedent.“

With respect to which assets governments will likely be coming for next, Jim said, ”401k plans, IRA’s, and pensions plans which the government knows about [may be next]…They’re rationale would be, ‘Well most people haven’t been doing well in their IRAs and pension plans for the past several years, so we’re going to help you. We’re going to take your pension plan and give you government bonds so that you have a guaranteed return.”

Jim Rogers: "I Suspect They'll Take The Pension Plans Next; I For One Am Worried, And I'm Taking Preparations" | Bull Market Thinking

:whistling:
 
#70
#70
President Biden’s Proposed Changes to 401(k) Plans

Here's a look at Biden's proposed 401(k) changes:
  • The 401(k) tax deduction would disappear.
  • Workers would instead get a tax credit for 401(k) contributions.
  • The tax advantage of contributing to a 401(k) would be reduced for higher earners and increase for low and middle earners.
  • The creation of an automatic 401(k) for workers without access to a workplace retirement account.
  • Allowing caregivers to make catch-up contributions to retirement accounts.
 
#71
#71
Rasputin_Vol said:
President Biden’s Proposed Changes to 401(k) Plans

Here's a look at Biden's proposed 401(k) changes:
  • The 401(k) tax deduction would disappear.
  • Workers would instead get a tax credit for 401(k) contributions.
  • The tax advantage of contributing to a 401(k) would be reduced for higher earners and increase for low and middle earners.
  • The creation of an automatic 401(k) for workers without access to a workplace retirement account.
  • Allowing caregivers to make catch-up contributions to retirement accounts.
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What I needed to see then! Time to retire!
 
#72
#72
Rasputin_Vol said:
President Biden’s Proposed Changes to 401(k) Plans

Here's a look at Biden's proposed 401(k) changes:
  • The 401(k) tax deduction would disappear.
  • Workers would instead get a tax credit for 401(k) contributions.
  • The tax advantage of contributing to a 401(k) would be reduced for higher earners and increase for low and middle earners.
  • The creation of an automatic 401(k) for workers without access to a workplace retirement account.
  • Allowing caregivers to make catch-up contributions to retirement accounts.
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Instead of creating yet another financial vehicle that must be tracked and reported, why not increase IRA limits?

And again, the benevolent government is happy to take your income, tax it, and give you an interest free credit 16 months later. May I have more please?
 
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#75
#75
Rasputin_Vol said:
President Biden’s Proposed Changes to 401(k) Plans

Here's a look at Biden's proposed 401(k) changes:
  • The 401(k) tax deduction would disappear.
  • Workers would instead get a tax credit for 401(k) contributions.
  • The tax advantage of contributing to a 401(k) would be reduced for higher earners and increase for low and middle earners.
  • The creation of an automatic 401(k) for workers without access to a workplace retirement account.
  • Allowing caregivers to make catch-up contributions to retirement accounts.
Click to expand...
I generally prefer tax credits to deductions. That proposal could be a good thing.
Punishing higher earners is the same play of economic envy out of the same 70 year old playbook. Higher earners have access to resources and experts to simply reallocate those funds to yield maximum return in spite of government rules.
Auto 401 for employees without access is another potentially good move.
I don't understand catch up contributions or why it would be limited to caregivers and how a caregiver is defined.
 
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