Nationalizing 401k accounts... version 3.0

[AZRedhawk44]

The Dems have floated this twice since 2008.

Here's their third try.

This is why I still don't have a penny in a 401k... because I think everyone with one will lose them.  They're the next golden goose for government to plunder.

http://money.usnews.com/money/blogs/capital-commerce/2008/10/23/would-obama-dems-kill-401k-plans.html

"Guaranteed Retirement Accounts."

The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return.

401k's - gone.

GRA mandatory 5% deduction from your paycheck, for a 3% annual return.

I'm sure that the "5% deduction" will be "pooled" in a way that the theives Washington elite can access it for pork and graft.

[Scout26]

HAHAHAHAHA

<---- Cashed out my 401k's      to pay Medical bills 

[RevDisk]

I don't see 401(k) nationalization.  Losing tax advantages, increased fees, discontinuation, etc?  Sure

Direct theft?  Na.

[charby]

I don't have a 401k but I do have a 403b

[taurusowner]

I don't have anything of the sort.  I also think that by the time I am of "retirement age" the country will be so different that what we think of as retirement right now won't even exist.  Honestly, I'm not even thinking there will be a United States 50 years from.

[Tallpine]

Between the stock market crash and this, living for today just got a lot more attractive 

[Boomhauer]

I don't see 401(k) nationalization.  Losing tax advantages, increased fees, discontinuation, etc?  Sure

Direct theft?  Na.

Every time I've said "Nah, no way in hell they'll do that", they've gone and done it.

[MechAg94]

I have one that is sizeable to me.  My company's current retirement plan consists of giving an extra few percentage points of 401K contributions over and above the standard matching level. 

I heard one comment somewhere that this might be a scare tactic to drive a bunch of people to cash them out and pay the taxes on them to increase Govt revenues. 

The other problem I would predict:  If they don't confiscate them, they will try to tax the earnings.  I am sure they will find a way to make you pay taxes on earnings even when the 401K sees a net loss. 

[Jocassee]

I don't have a 401k but I do have a 403b

I have a 762(r)

 

[charby]

I have a 762(r)

 

Well I put in 5% and my employer puts in 10% so I think that beats your commie bloc rifle.

[Jocassee]

Well I put in 5% and my employer puts in 10% so I think that beats your commie bloc rifle.

It all depends on when--or whom--you plan on "retiring."

[HankB]

I'm with RevDisk on this - I can see them (commit political suicide) by changing the terms of 401(k) plans, terminating future contributions, using distributions to reduce Social Security payments, or monkeying with the tax treatment, but outright theft WOULD provoke anger in a lot - and I do mean A LOT - of people,

And if only 1/10 of 1% of the victims were to decide to do something . . . direct . . . things could get very ugly very fast . . .

[Marnoot]

Not contributing to my 401K would be stupid as I'd be missing out on free money (matching contributions from my employer). If such a law were to pass, I'd cash-out my 401K and take the penalties rather than let it go under goobermint control. I don't think outright theft of 401Ks will occur for the reasons already mentioned.

I can see 401Ks getting mangled to the point I'd no longer wish to have one, many people would be angry (me included), and some people would probably lose their political office the subsequent election; that would be the extent of it. Outright theft of people's saved money in their 401Ks would result in some very unpleasant things happening, IMO. For now, I don't see that happening.

[longeyes]

They will do it in the name of "fairness," and all the people who haven't saved enough will be ecstatic.

What is already set in motion is a war between the productive, the self-disciplined, the honorable, and Everyone Else.  The rest is just pre-dance fidgeting.

[RoadKingLarry]

What is already set in motion is a war between the productive, the self-disciplined, the honorable, and Everyone Else.

Sometimes I wonder if that really is their goal.
I just can't see another reason for the ever increasingly shrill class warfare crap they keep pushing.

[MechAg94]

What works so far is that in general, the productive vote in far greater numbers than "Everyone Else" if they have something to vote for.

[longeyes]

The goal isn't the conflict between productive and non-productive; the goal is control.  The conflict is just the means to the end of control.  They are counting on more and more Americans who are dependent and feel entitled. This isn't exactly news.

[Silver Bullet]

They will do it in the name of "fairness," and all the people who haven't saved enough will be ecstatic.

What is already set in motion is a war between the productive, the self-disciplined, the honorable, and Everyone Else.  The rest is just pre-dance fidgeting.

You nailed it.

[Jocassee]

They will do it in the name of "fairness," and all the people who haven't saved enough will be ecstatic.

What is already set in motion is a war between the productive, the self-disciplined, the honorable, and Everyone Else.  The rest is just pre-dance fidgeting.

Billy Beck--"All politics in this country now is just dress rehearsal for civil war."

[brimic]

I'm with RevDisk on this - I can see them (commit political suicide) by changing the terms of 401(k) plans, terminating future contributions, using distributions to reduce Social Security payments, or monkeying with the tax treatment, but outright theft WOULD provoke anger in a lot - and I do mean A LOT - of people,

And if only 1/10 of 1% of the victims were to decide to do something . . . direct . . . things could get very ugly very fast . . .

If the democrats lose large numbers in next weeks election, I wouldn't discount them doing it between the election and january as a parting F- you to American voters. Obama would rubber stamp it, and the Republicans wouldn't have veto proof numbers to repeal it.

[Boomhauer]

If the democrats lose large numbers in next weeks election, I wouldn't discount them doing it between the election and january as a parting F- you to American voters. Obama would rubber stamp it, and the Republicans wouldn't have veto proof numbers to repeal it.

Exactly. We are shortly to enter a very dangerous couple of months, where in even though we may "win" in November, it could be a Pyrrhic victory.

[makattak]

Exactly. We are shortly to enter a very dangerous couple of months, where in even though we may "win" in November, it could be a Pyrrhic victory.

It will be frightening, but there are senators whose election will be coming up in two years. In fact a great deal of the democrat senators will be up for election.

They might not be so willing to fall on their swords while the house tries to give one last FU to the American public.

[longeyes]

Expropriating 401Ks would turn the Tea Party into the Guillotine Party.  Not a great idea.

[brimic]

They might not be so willing to fall on their swords while the house tries to give one last FU to the American public.

The problem comes with the aftermath of such a law.
How many individual's personal lines in the sand will be crossed when the government confiscated 100s of thousands of dollars, and in many cases millions of dollars from them?
How many of these people have the means of making the lives of certain public figures very precarious?
How many will act when their personal fortunes are taken stolen?

By the time the law would take effect (don't discount a 'special' weekend session like they did with obamacare), the Republicans would be in power and left holding the bag when 'order' needs to be restored.
The democrats will be less remembered  for their massive theft than republicans will be remembered for being 'fascists who trampled all over the Constitution' once the dust settles.

[Zardozimo Oprah Bannedalas]

Wouldn't happen, especially as the Democrats are leaving office. Taxation is never wrong to these people. It is free money.