IRA Futures????????

[CG6468]

Private Savings Accounts May Be "On the Table" in Fiscal Cliff Talks

Monday, 19 November 2012 15:01

As part of the Administration’s continuing drive to redistribute wealth, the National Seniors Council believes that tax-deferred contributions to retirement plans like 401(k)s and IRAs may very well be on the table in bipartisan budget negotiations going on right now between Congress and the White House.
 
NSC will vigorously oppose any such “compromise.”
 
Liberals in Washington have long maintained that the favorable tax treatment of such contributions is effectively a “subsidy” to people who can afford to save for retirement and is not only unfair but a significant cause of the current government debt crisis. Therefore, it is quite likely that some type of limitation on how much “wealthy” individuals will be allowed to save using these investment vehicles is being insisted on by the Administration.
 
Since President Obama first came into office his Administration has made no secret of its desire to overhaul the way Americans save for retirement. This new National Retirement System will force virtually all Americans into government-run Guaranteed Retirement Accounts and do away with private retirement accounts entirely.

Congressional Democrats held hearings on this very issue in 2008, an alliance of labor unions and left-wing groups have founded Retirement USA, a non-profit lobbying group, and legislation limiting the ability of individuals to control their private savings is currently pending before Congress.

PulPull the cash out of your IRA's?

[thundley4]

Liberals in Washington have long maintained that the favorable tax treatment of such contributions is effectively a “subsidy” to people who can afford to save for retirement and is not only unfair but a significant cause of the current government debt crisis.

A lot of people scrimp, save and do without many luxuries to save that money.  Are they going to take the money from union pensions too?

[CG6468]

I'm seriously considering taking my IRA funds and paying the taxes to withdraw what's left of them.

[J P Sousa]

  National Retirement System will force virtually all Americans into government-run Guaranteed Retirement Accounts   

Like government GUARANTEED mortgages ? Yeah, that worked out well.

  Fannie Mae and Freddie Mac, which buy mortgages from lenders and repackage them as securities for investors, are expected to draw between $191 billion and $209 billion from the U.S. Treasury by the end of 2015, the regulator said.

http://www.reuters.com/article/2012/10/26/usa-housing-idUSL1E8LQ8JN20121026

 

  Nov 20 - The U.S. Department of Housing and Urban Development (HUD)
announced Friday that the Federal Housing Administration (FHA) does not have
enough reserves to cover its projected losses. 

http://www.reuters.com/article/2012/11/20/idUSWNA985420121120

Government;  doing the same thing over and over and expecting a different result = INSANITY.
.

[zeitgeist]

I'm seriously considering taking my IRA funds and paying the taxes to withdraw what's left of them.

I couldn't resist posting a link to the group you referenced and their goals for the folk who may still be a bit in the dark about what goes on in the liberal mind.

http://www.retirement-usa.org/our-principles

Our Principles




Principles for a New Retirement System
 
Universal Coverage. Every worker should be covered by a retirement plan. A new retirement system that supplements Social Security should include all workers unless they are in plans that provide equally secure and adequate benefits.
 
Secure Retirement. Retirement shouldn't be a gamble. Workers should be able to count on a steady lifetime stream of retirement income to supplement Social Security.

Adequate Income. Everyone should be able to have an adequate retirement income after a lifetime of work. The average worker should have sufficient income, together with Social Security, to maintain a reasonable standard of living in retirement.
 
***
 
Shared Responsibility. Retirement should be the shared responsibility of employers, employees and the government.

Required Contributions. Employers and employees should be required to contribute a specified percentage of pay, and the government should subsidize the contributions of lower-income workers.

Pooled Assets. Contributions to the system should be pooled and professionally managed to minimize costs and financial risks.

Payouts Only at Retirement. No withdrawals or loans should be permitted before retirement, except for permanent disability.
 
Lifetime Payouts. Benefits should be paid out over the lifetime of retirees and any surviving spouses, domestic partners, and former spouses.
 
Portable Benefits. Benefits should be portable when workers change jobs.

Voluntary Savings. Additional voluntary contributions should be permitted, with reasonable limits for tax-favored contributions.

Efficient and Transparent Administration. The system should be administered by a governmental agency or by private, non-profit institutions that are efficient, transparent, and governed by boards of trustees that include employer, employee, and retiree representatives.
 
Effective Oversight. Oversight of the new system should be by a single government regulator dedicated solely to promoting retirement security.

And four years for the final shakedown.      Never Let A Good Crisis Go To Waste.

[rich_t]

I'm seriously considering taking my IRA funds and paying the taxes to withdraw what's left of them.

The thought has crossed my mind a time or two.

[Bad Dog]

I'm seriously considering taking my IRA funds and paying the taxes to withdraw what's left of them.

I'm sure Obumbles will appreciate the "revinue".

[jtyangel]

This is just outrageous. More and more I don't think we have time for slow cultural change. We need instead the balls of our forefathers.

[DefiantSix]

This is just outrageous. More and more I don't think we have time for slow cultural change. We need instead the balls of our forefathers.

Are you referring to the reproductive variety, or the cast lead and iron varieties? 

[Lacarnut]

I'm seriously considering taking my IRA funds and paying the taxes to withdraw what's left of them.

I would not do that if I were you. The penalty for early withdrawal at 10% and the tax will eat you up. Go talk to a tax specialist first.

[CG6468]

The thought has crossed my mind a time or two.

From my financial guy:

You will want to check with your tax person to see if it makes sense to take money out of your IRA’s now depending on your tax bracket. Some members who are In lower tax bracket now have made the decision to withdraw funds now from IRA’s, etc. and pay the tax now versus in the future when the rates may be higher. You will want to have this conversation with your tax advisor prior to the end of the year to see where your tax rate is at and if it makes sense to consider it.

[CG6468]

I would not do that if I were you. The penalty for early withdrawal at 10% and the tax will eat you up. Go talk to a tax specialist first.

10% vs. negative % makes some sense.

[NHSparky]

Are you referring to the reproductive variety, or the cast lead and iron varieties? 

Yes.

[rich_t]

From my financial guy:

Looking back on it, I wish I had opened a Roth IRA instead of the traditional variety.  I'll have to check into the penalty for converting it over.

[MrsSmith]

Take over all privately held retirement funds, create Social Security 2, use the funds to "pay back" all the money they stole from Social Security, triple or quadruple the payroll taxes on all...and call it "FAIR."  "For our own good." 

 

[rich_t]

Take over all privately held retirement funds, create Social Security 2, use the funds to "pay back" all the money they stole from Social Security, triple or quadruple the payroll taxes on all...and call it "FAIR."  "For our own good." 

 

Yup.   

[zeitgeist]

I got side tracked earlier and I really don't remember if this is where I was going to drop this link.

http://www.bloomberg.com/news/2010-11-25/hungary-follows-argentina-in-pension-fund-ultimatum-nightmare-for-some.html

But this could never happen here?  Right?


And anyone listening to Rush today must be going NUTS if they happen to have a 401K

I might have meant to put it here:
http://www.conservativecave.com/index.php/topic,80957.0.html

[CG6468]

Looking back on it, I wish I had opened a Roth IRA instead of the traditional variety.  I'll have to check into the penalty for converting it over.

My accountant said to stand pat.

[NHSparky]

My accountant said to stand pat.

Pretty much--if you've already opened a traditional IRA, the taxes you'd have to pay (at the marginal rate) pretty much negate any benefit going to a Roth.