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

Joseph64 Wrote: Nov 29, 2012 5:31 PM
That 3% comes out of employee salaries and benefits when their hours are cut back or they lose their jobs. How does that extra 3% help close the budget gaps when you have millions more people collecting unemployment and NOT paying taxes?

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...