We know the government wants to go after them next; your 401k and your IRA. They want to tap into private pensions. It’s just another step towards the socialized society that they are moving towards.
A 2012 study by the Investment Company Institute illustrates that U.S. retirement assets total $18.5 trillion (two components of which are $3.5 trillion in IRAs and $5.1 trillion in 401(k) plans). This presents a very tempting target for the administration to help fund a spiraling budget deficit that is approaching $20 trillion.
Your retirement 401k and/or IRA plans may be slated for dramatic changes ranging from limiting deductions, to retroactive taxation and to possibly include a nationalization scheme by imposing government mandated plans on employers with savings allocated to Treasury bonds.
Today’s 401k and IRA plans allow you to contribute and save money tax free. You are taxed when you take it out, later, presumably at a lower tax rate since you will be retired earning less income then. It is a great way to help save and build a safety net for your retirement years.
The problem is… the current socialistic thinking is more like the following… “We are denying the federal government the tax revenue it deserves”. In other words, we all are serfs of the government and by deferring our tax until a later date, we are denying them the money they deserve today… as though it all belongs to them to begin with.
You see, you’re costing the government by saving more of your money.
Why don’t we just nationalize the 401k’s? or Stop contributions at $5k?
With the so called ‘fiscal cliff’ looming near, more stories are popping up in the news regarding the notion of some form of government intervention with your IRA’s and 401k’s. Beware. They are desperately seeking revenue. Desperate people (governments) do desperate things.
What can you do about it? Pay attention to what is happening. Search out details. Listen for it in the news, that is if you can even find it in the mainstream. Write, phone, or email your congressman of your opinion. You must NOT do nothing. Instead, do something. That is, if you care.