401k news

[rrplasencia]

check out c-cpan transcripts from friday by the education and labor comittee (george miller chairman-D). proposing a plan to nationalize your 401k. they would take over 401k and give 3-4% yearly to be returned to you in your social security checks. would also no longer be a pre-tax deduction. just fyi since you would only have seen if you watch c-span.

and this is gonna fly? very perplexing.

[zmancbr]

Wow... what a terrible idea... we don't need to nationalize we need to Privatize.. I wish I had 100% control over my SS dollars... the fact that I might never see them again when I hit retirement irritates me....

[Clampdown]

I LOVE SOCIALISM

[houdini]

Originally Posted by Clampdown

I LOVE SOCIALISM

You aint kidding!

[N2Advnture]

I can't locate the transcripts anywhere on their site. Do you have a source for this info?

Thanks,
Mark

[md4958]

my understanding was that you would have the OPTION... it wasnt obligitory

but then again... i shouldnt try to understand government officials

[dunng]

Ouch... It's time to elect new people to Congress. Suprisingly, he's not from Mass!

[N2Advnture]

Originally Posted by md4958

my understanding was that you would have the OPTION... it wasnt obligitory

but then again... i shouldnt try to understand government officials

If it's been proposed by (D) and we have a (D) president then the odds of something so ridiculous happening become greater. (This isn't the first time they've tried to nationalize 401ks).

Trying to find the latest info now

[N2Advnture]

Just found this:

House Democrats Contemplate Abolishing 401(k) Tax Breaks Powerful House Democrats are eyeing proposals to overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive.

House Education and Labor Committee Chairman George Miller, D-California, and Rep. Jim McDermott, D-Washington, chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute.

A plan by Teresa Ghilarducci, professor of economic-policy analysis at the New School for Social Research in New York, contains elements that are being considered. She testified last week before Miller’s Education and Labor Committee on her proposal.

At that hearing, the director of the Congressional Budget Office, Peter Orszag, testified that some $2 trillion in retirement savings has been lost over the past 15 months.

Under Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.

The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.

This strategy didn't work so well in Argentina.
Argentina announced it was taking over the pension system to protect workers from losses this week.
This caused the Argentina market to crash 16.7 percent this week.

[md4958]

Originally Posted by dunng

Ouch... It's time to elect new people to Congress. Suprisingly, he's not from Mass!

for once!

[md4958]

to which all workers would be obliged to contribute.

Originally Posted by N2Advnture

Just found this:

so i guess it is obligitory... my bad

This kind of activity within our government just BURNS me!!

[BigAl_SC]

As a small business owner, this would also kill the SEP's. I've averaged about 10 % over the last 15 year (access to a large off market employee owned company) so this would kill any plans for early retirement.

[stitch]

If Congress controls it, Congress will raid it.
Just one more way for them to steal our money..
But then, Then know whats best for us don't they.

[rrplasencia]

i'll have to look for the link it's moved since friday but i actually watched c-span for 2 hours while it happened. Mark's post actually sums it up pretty well. even if they don't get this exact version passed any variation of this is a bad idea. the last half hour of c-span i saw (i know i'm hooked) was some other proposal to tax ammo by 500% since supreme court is upholding right ro bear arms.

[zmancbr]

As long as it is optional I could care less... but believe me I know what to do with my money better than our government does. 3% is absolutely terrible... I am a high risk investor and keep all of my stuff in high risk/return funds to maximize my yields while I am still younger... The last thing I need is to get that replaced with a 3% gain per year?

[N2Advnture]

Originally Posted by rrplasencia

...the last half hour of c-span i saw (i know i'm hooked) was some other proposal to tax ammo by 500% since supreme court is upholding right ro bear arms.

Good grief....btw - at least we know they are Chris Rock fans

[stitch]

Originally Posted by rrplasencia

some other proposal to tax ammo by 500% since supreme court is upholding right ro bear arms.

THAT is Exactly why I've been loading and stocking my own for 20+ years!

[zmancbr]

I wish politicians would learn that taxing anything to death means people will go to extremes to get it elsewhere...

What do they think will happen if they add the SCHIP tax to cigars? All they are going to do is put cigar vendors and B&Ms out of business here in the states... and more people will buy via the internet and have them shipped in... it is a lose/lose for everyone involved...