I seem to recall that the clinton administration floated the idea of a "one-time tax" on 401k plans. That was shot down. Now, since the markets have largely been in the toilet, it looks like the government's plan to take our 401ks is back again.
Here is a link to another article.
From this article:
U.S. investors oppose federal initiatives that would force them to give up control over their 401(k) accounts, the Investment Company Institute said.
Seven in 10 U.S. households object to the idea of the government requiring retirees to convert part of their savings into annuities guaranteeing a steady payment for life, according to an institute-funded report today.
I couldn't figure out how 3 out of 10 households could NOT oppose this insanity. My better half pointed out that they are probably the people who don't contribute to a 401k or IRA.
From the market-ticker.org article:
You can bet this won't be good for you, the ordinary American.That is a true statement and you can take it to the bank, so to speak.
One last bit:
This "proposal" can only mean one thing - Treasury smells smoke. Maybe you should pay attention to what they're huffing!Not exactly a rosy prediction.
Things to think about:
1. Do you know the procedure to withdraw money from your 401k and IRA?
2. Do you know the withdrawal limits on your 401k?
3. Will we have enough warning to pull that money out or will the government take steps to shut that option down?
Don't forget the penalties on early withdrawals and the income taxes you'll have to pay.
One last thought on this:
I don't see 403b mentioned anywhere in the article. Does that mean that teachers will get a pass on this?
Hold on tight, this could get a little rough.