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Fiscal Cliff Idea: How About We Tax Your 401k?

Bay0Wulf Wrote: Nov 30, 2012 10:32 AM
Fees and Penalties for early withdrawal are very high. They lock up "your" savings for several years and give you little advantage until they become available. In fact, they're almost like Savings Bonds which are honestly almost worthless as a "Savings" investment. Then there was my concern over the fact that this money would be in plain sight to the Gov. and when they ran out of other "free money" what would prevent them from somehow break into these funds? Right now the talk is of taxing the funds but ... I wonder how long it will be before the Gov stops screwing around and just does the SSI shuffle of taking over the funds and "watching over" & "protecting" them like they have done with the SSI funds?
Bay0Wulf Wrote: Nov 30, 2012 10:36 AM
In case there is any question ... the thought of "taking over" these funds in their entirety has been murmured about for several years on the political scene.

The Gov hasn't quite figured out how to get their hand into the cookie jar but they're working on it and once it happens you can be sure that they will replace the funds with more worthless IOU's while simultaneously figuring out ways to deprive you of as much of the principal as possible.

IRA's and 401k's ... Brilliant ... Chum in the water for hungry politicians.

How do you feel about the government touching your private retirement account known as your 401k in order to "pay down the deficit?" Not so good? Already feel like the government has stolen your retirement through Social Security? Well get ready because taxing the 401k is floating around as an idea while the fiscal cliff talks on Capitol Hill continue.

One of the earliest fears about tax-favored savings accounts like IRAs and 401(k) plans was that when this pool of savings grew large enough Congress would not be able to resist tapping it to help solve the...