Broke U.S. Government Eying Your Retirement Savings

[Chris_]

Dodd-Frank's new "consumer protection" agency wants to "help" Americans manage their nearly $20 trillion in retirement savings, and President Obama has tax loopholes in his sights

CFPB director and longtime Democratic politician Richard Cordray earlier this month told Bloomberg News that managing retirement savings is "one of the things we've been exploring ... in terms of whether and what authority we have."

In this context comes the release of a report from the liberal Brookings Institution last week suggesting a 28% cap on "the rate at which deductions and exclusions related to retirement saving reduce a taxpayer's income tax liability."

As American Society of Pension Professionals & Actuaries CEO Brian H. Graff charged last week, such a cash grab "would more accurately be described as double taxation" in which "a small-business owner in the 39.6% bracket would pay an 11.6% tax on contributions made to the 401(k) plan today, and pay tax again at the full rate when they retire."

Investors Business Daily

[CG6468]

Up your ass, pretender, and rotate it - with sand.

[thundley4]

Dodd-Frank's new "consumer protection" agency wants to "help" Americans manage their nearly $20 trillion in retirement savings, and President Obama has tax loopholes in his sights

CFPB director and longtime Democratic politician Richard Cordray earlier this month told Bloomberg News that managing retirement savings is "one of the things we've been exploring ... in terms of whether and what authority we have."

In this context comes the release of a report from the liberal Brookings Institution last week suggesting a 28% cap on "the rate at which deductions and exclusions related to retirement saving reduce a taxpayer's income tax liability."

As American Society of Pension Professionals & Actuaries CEO Brian H. Graff charged last week, such a cash grab "would more accurately be described as double taxation" in which "a small-business owner in the 39.6% bracket would pay an 11.6% tax on contributions made to the 401(k) plan today, and pay tax again at the full rate when they retire."

Investors Business Daily

Eventually they'll get around to "helping" us with our regular checking and savings accounts in the same way.

[zeitgeist]

Eventually they'll get around to "helping" us with our regular checking and savings accounts in the same way.

They already do.  It is called FICA and Withholding on your paycheck.  Unless you are self employed, they get their money before you do.

[Dori]

Eventually they'll get around to "helping" us with our regular checking and savings accounts in the same way.

Taxing personal property.  They'll start with your 401Ks and move down to your furniture, appliances, etc.  Everyone will have to file an asset inventory list with their tax returns.  

Los Angeles does this on businesses.  They even tax items you've purchased and used during the year, like paper clips and sticky notes.

[DefiantSix]

CFPB director and longtime Democratic politician Richard Cordray earlier this month told Bloomberg News that managing retirement savings is "one of the things we've been exploring ... in terms of whether and what authority we have."

This shithead was put in his position by virtue of another illegal/unconstitutional "recess" appointment (the case is currently making it's way through the court system.). He's so crooked he has to screw on his socks in the morning.

[Traveshamockery]

 

[zeitgeist]

Now, now, don't get all upset.  There will be a nice warm shower waiting after the train ride.

DUmmies love the idea of taxing the rich and if you have a 401k you are rich (to a DUmmy who doesn't have two sticks to rub together nor the cents to try in the first place.)

And remember, FDR showed how to confiscate the gold for those who think they can escape via that route.  They've already been working on hoarding all the lead and brass. 



 

[md11hydmec]

So basically, take from those who've prepared so that you can fund failed policies.  Is there anything the head dumbass in charge won't try to do?  Because we can all see how effectively the government manages its money.  I hope I don't need the sarcasm tag for that.

[Boudicca]

Up your ass, pretender, and rotate it - with sand.

Nah, dirty used cat litter is good enough for those assholes!

[RobJohnson]

The article sums it up

What doesn't work is the government, which should be told to stuff its offer of help at managing people's money. Better to have Typhoid Mary run the Centers for Disease Control

 

   Every March I get two deposits into my 401k from my company. A guaranteed match and a discretionary match based on profits from the previous year. It has never been less then 300% of what I have contributed. It's a very good benefit for working my ass off. A change in the tax protection of 401ks would **** me. Yes, they put in over $3 for every dollar I put in. This year it will be closer to $4.

I actually have coworkers that claim they can't afford to contribute to the plan so they miss the matching funds. These are the same dumbasses that go without health benefits which are pretty inexpensive where I work.

[SaintLouieWoman]

The article sums it up

 

   Every March I get two deposits into my 401k from my company. A guaranteed match and a discretionary match based on profits from the previous year. It has never been less then 300% of what I have contributed. It's a very good benefit for working my ass off. A change in the tax protection of 401ks would **** me. Yes, they put in over $3 for every dollar I put in. This year it will be closer to $4.

I actually have coworkers that claim they can't afford to contribute to the plan so they miss the matching funds. These are the same dumbasses that go without health benefits which are pretty inexpensive where I work.

That's a really generous 401k, wish I had one that good. I used to always contribute to the max, as it usually put me into a lower tax category and I ended up with almost the same paycheck anyway. It was great beating the tax guy like that. It really ticks me off that the government would discourage personal savings with the proposd tax changes. They'll stiff folks out of the Social Security as they drive it into the ground and mess up the 401k's, too. I hope those folks who sat home on election day are really pleased with themselves. 

[txradioguy]

Up your ass, pretender, and rotate it - with sand.

What worries me...and what I can't get an answer on yet from any of the military financial planners at ACS...is whether this effects our TSP accounts.  I'm about to start mine...but if the Feds are gonna grab it right about the time I get ready to retire..I'm better off stuffing what I'm about to get $$$ wise into a mattress rather than using it as seed money in my TSP.

[zeitgeist]

What worries me...and what I can't get an answer on yet from any of the military financial planners at ACS...is whether this effects our TSP accounts.  I'm about to start mine...but if the Feds are gonna grab it right about the time I get ready to retire..I'm better off stuffing what I'm about to get $$$ wise into a mattress rather than using it as seed money in my TSP.

TSP = 401k IMHO.  Tax deferral is the main benefit of the TSP/401k.  I rolled my IRA into my TSP when I retired.  It should be noted that CSRS employees did not get a government matching contribution to their TSP like the folk do with FERS.  (I think I am right on that, that FERS still get a match even if they don't contribute.)

I recently got a statement of my career contributions to TSP along with catch up payments.  I am not sure how I will be taxed on the money when I start to draw it out.  Any sharp pencil folk out there know the answer to that one?  I assume they will tax more on the earned interest than the initial principal but really haven't a clue.  

[Eupher]

It's important to underline that 401(k)'s are tax DEFERRED. Meaning, of course, that Uncle Sugar will get his cut when distributions finally start flowing.

You can believe under Barry and his Boys, that tax rate will skyrocket.

[Lacarnut]

TSP = 401k IMHO.  Tax deferral is the main benefit of the TSP/401k.  I rolled my IRA into my TSP when I retired.  It should be noted that CSRS employees did not get a government matching contribution to their TSP like the folk do with FERS.  (I think I am right on that, that FERS still get a match even if they don't contribute.)

I recently got a statement of my career contributions to TSP along with catch up payments.  I am not sure how I will be taxed on the money when I start to draw it out.  Any sharp pencil folk out there know the answer to that one?  I assume they will tax more on the earned interest than the initial principal but really haven't a clue.  

I retired as a state employee. The 401 and 457 are taxed at the same rate when you draw it out because zero taxes have been taken out. The only way that you can get out of paying taxes while you are still working is to open a Roth IRA. The pre taxed principal will not be taxed nor will the interest it draws. If you have a large amount in a 401, it might be a good idea to fund a Roth IRA rather than continue funding a deferred tax plan like a 401 or 457..

There is also a penalty for drawing a 401 out if you are under 59 1/2 unless it is a harship case. It is not a good idea to draw out large amounts of a 401 cause that pumps you up into a higher tax bracket.  Talk to a tax adviser cause the feds might have different or preferential rules than state or private employees.

From what I have read, bastard Democrats want to require pension funds to buy gov. bonds and send them your cash starting out at a around 5% of your contributions. The gov figures that you will get a 2% return on your money. However, the SS Trust fund is broke. So, who are these jackasses trying to fool with this theft. My retirement system invests in different things and has averaged around 8% for the past 10 years. The gov. could not manage a whore house. So, this money grab will be placed in the general fund and spend and the IOU's/Gov. securities will be worth as much as what is in the SS fund. Toliet tissue.    

[Ptarmigan]

The government is really broke. What next? A telethon. Reminds me of the movie Americathon.

[RobJohnson]

That's a really generous 401k, wish I had one that good. I used to always contribute to the max, as it usually put me into a lower tax category and I ended up with almost the same paycheck anyway. It was great beating the tax guy like that. It really ticks me off that the government would discourage personal savings with the proposed tax changes. They'll stiff folks out of the Social Security as they drive it into the ground and mess up the 401k's, too. I hope those folks who sat home on election day are really pleased with themselves.  

It amazes me how many people that don't realize that 401k contributions make very little difference to their take home pay. The minimum contribution at work to get the company match would of only made a difference of less then four bucks a week in net pay, yet so many people don't take advantage of it. They even sent people around to the work locations to "explain it" to the employees and a few did end up signing up a couple years after they were hired. They simply had no clue. It's also good for the company as it encourages longevity. I end up being the "go to person" when an employee needs help choosing health insurance or other benefits.  Most of our managers don't even have a clue. I like to stay on top of things. I had to explain to a store manager how he could reduce his family's health insurance deductible by free wellness screening and lab work. Once again, he had no idea.

The benefits keep me planted at my current job. They just added another week of vacation this year. I keep looking at the big picture.

[txradioguy]

I assume they will tax more on the earned interest than the initial principal but really haven't a clue.  

It depends on whether your TSP is in a traditional IRA or the new Roth ones we are allowed to use.