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

cjurgens Wrote: Nov 30, 2012 11:47 AM
I love how this site refreshes and obliterates a comment in process... I, like most, lost a huge amount of money in my 401Ks. Another thought, now that I have reached the age where I have to withdraw: had I invested in the same stocks and bonds on my own, I'd now be paying long term capital gains tax rather than personal income tax, which for me, would be substantially less. And I could take the money out according to my needs rather than as dictated by the IRS. As far as percentage goes, I don't actually know, but I am sure that I would have done better paying the tax when earned and putting the remainder in CDs or other interest bearing accounts.
Thasic Wrote: Dec 01, 2012 6:33 AM
For you the long term capitol gains may be less, but for future generations it is likely to skyrocket, if Obama has any say in the matter. Which he obviously does.

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...