In response to:

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

Frank1802 Wrote: Nov 30, 2012 4:52 AM
I have warne you all about this possibility for the past four years. Obama floated this idea early in his first term. The idea as it was put then was that the Fed would take control of you 401K, administer it and decide were it would be used for an annuity and that in the event of the beneficiary dying then the residue would revert NOT to the estate of the deceased but to the Treasury. We have had this under Labour in the UK were they stole $7.5 billion per year from our private pensions - not to pay off debt or reduce the deficit but to fund ever expanding entitlements. Be warned that is what will happen to your 401K's.

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...