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Obama cancelling 401k plans?

Vanquish

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Someone said Obama was going to remove the exemption from 401k plans. I'm not :D so green as to believe it without research. I've seen discussion on either side.

I'd like to hear what USMB people have to say.
 

waltky

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401k's undermining retirement security for millions...
:eek:
401(k) breaches undermining retirement security for millions
Tuesday, January 15,`13 - A large and growing share of American workers are tapping their retirement savings accounts for non-retirement needs, raising broad questions about the effectiveness of one of the most important savings vehicles for old age.
More than one in four American workers with 401(k) and other retirement savings accounts use them to pay current expenses, new data show. The withdrawals, cash-outs and loans drain nearly a quarter of the $293 billion that workers and employers deposit into the accounts each year, undermining already shaky retirement security for millions of Americans.

With federal policymakers eyeing cuts to Social Security benefits and Medicare to rein in soaring federal deficits, and traditional pensions in a long decline, retirement savings experts say the drain from the accounts has dire implications for future retirees. “We’re going from bad to worse,” said Diane Oakley, executive director of the National Institute on Retirement Security. “Already, fewer private-sector workers have access to stable pension plans. And the savings in individual retirement savings accounts like 401(k) plans — which already are severely underfunded — continue to leak out at a high rate.”

A report due out this week from the financial advisory firm HelloWallet found that more than one in four workers dip into retirement funds to pay their mortgages, credit card debt or other bills. Those in their 40s have been the most likely culprits — one-third are turning to such accounts for relief. Fresh data from Vanguard, one of the nation’s largest 401(k) managers, show a 12 percent increase in the number of workers who took loans against their retirement accounts or withdrew money outright since 2008.

The most common way Americans tap their retirement funds is through loans, which must be repaid with interest. Those who withdraw money face hefty penalties. In most cases, they not only incur a 10 percent federal tax penalty but also pay income taxes. The costs are financially harmful to families even as *money-management firms reap massive fees for handling retirement accounts that ultimately are not used for retirement.

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Katzndogz

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They might as well take it now. obama has made it clear that he intended to confiscate retirement funds.
 

Dont Taz Me Bro

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They might as well take it now. obama has made it clear that he intended to confiscate retirement funds.
He said absolutely no such thing, but hey, let's not facts get in the way of your lies.
 

percysunshine

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Someone said that Bill Clinton moved his to Ireland so the Chinese could not get to it.
 

uscitizen

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Someone said that Al Gore was getting your 401K to buy carbon credits with.
 

boedicca

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This is not new news:

When it comes to how we spend and save, borrow and lend, nothing in this nation will ever be the same.

I can't tell you how the financial crisis will be solved, when the Dow will return to 13,000 or if home prices will recover anytime soon. But the events of the past two months make it clear our national money habits are in for big changes.

Given that reality, there's one proposal you might want to keep an eye on. A recommendation to shake up the nation's 401(k) system is gaining traction as workers and retirees gape in horror at their investment account balances.

"Four weeks ago this plan didn't have a chance," conceded its author, Teresa Ghilarducci.

Suddenly, things have changed. Ghilarducci's proposal to create what she calls Guaranteed Retirement Accounts is gaining attention in Washington as the nation grapples with the issue of retirement security in the wake of a 40-percent-plus drop in the U.S. stock market this year.
...


Movement to Scrap 401(k)s Gains Traction - ABC News


Obama is waiting for the proper "Crisis" in order to nationalize 401K and IRA accounts. The proceeds will be used to bail out underfunded union pensions - with the folks whose accounts are seized left to rely on some form of "expanded" Social Security (another entitlement program to be paid for by unborn children).
 

Rozman

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They might as well take it now. obama has made it clear that he intended to confiscate retirement funds.
I totally agree....
It's only a matter of time before the government confiscates or nationalizes our retirement accounts.

I have voiced my opinion many times on this.

On this debt ceiling issue...
why is it the Democrats say we don't have a spending problem as in government spending too much yet every year we need to raise the debt limit to cover our increase in spending????? :confused:
 

Katzndogz

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We will know when obama reached his spending limit when he can no longer borrow. It may have already happened and he won't allow it to be made public. If the royal regime is reduced to looting federal pensions and minting magic coins some one might have cut up a credit card.
 

Dont Taz Me Bro

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This is not new news:

When it comes to how we spend and save, borrow and lend, nothing in this nation will ever be the same.

I can't tell you how the financial crisis will be solved, when the Dow will return to 13,000 or if home prices will recover anytime soon. But the events of the past two months make it clear our national money habits are in for big changes.

Given that reality, there's one proposal you might want to keep an eye on. A recommendation to shake up the nation's 401(k) system is gaining traction as workers and retirees gape in horror at their investment account balances.

"Four weeks ago this plan didn't have a chance," conceded its author, Teresa Ghilarducci.

Suddenly, things have changed. Ghilarducci's proposal to create what she calls Guaranteed Retirement Accounts is gaining attention in Washington as the nation grapples with the issue of retirement security in the wake of a 40-percent-plus drop in the U.S. stock market this year.
...


Movement to Scrap 401(k)s Gains Traction - ABC News


Obama is waiting for the proper "Crisis" in order to nationalize 401K and IRA accounts. The proceeds will be used to bail out underfunded union pensions - with the folks whose accounts are seized left to rely on some form of "expanded" Social Security (another entitlement program to be paid for by unborn children).
This was a mere suggestion from somebody not in the presidential administration which wasn't taken the least bit seriously. And Obama wasn't president yet when this woman spoke.
 

Katzndogz

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obama has stopped waiting for crises. He's making them now.
 

SteadyMercury

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This was a mere suggestion from somebody not in the presidential administration which wasn't taken the least bit seriously. And Obama wasn't president yet when this woman spoke.
Heh heh I noticed that too.

Poor confused boedicca was able to back up his claims about Obama's nefarious plans to regarding 401ks but digging up a link from October 2008 before he was even elected, from some woman who's plan went absolutely nowhere.
 

percysunshine

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Joe Biden is still a 5/3 favorite as the source of the rumor.
 

boedicca

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This is not new news:

When it comes to how we spend and save, borrow and lend, nothing in this nation will ever be the same.

I can't tell you how the financial crisis will be solved, when the Dow will return to 13,000 or if home prices will recover anytime soon. But the events of the past two months make it clear our national money habits are in for big changes.

Given that reality, there's one proposal you might want to keep an eye on. A recommendation to shake up the nation's 401(k) system is gaining traction as workers and retirees gape in horror at their investment account balances.

"Four weeks ago this plan didn't have a chance," conceded its author, Teresa Ghilarducci.

Suddenly, things have changed. Ghilarducci's proposal to create what she calls Guaranteed Retirement Accounts is gaining attention in Washington as the nation grapples with the issue of retirement security in the wake of a 40-percent-plus drop in the U.S. stock market this year.
...


Movement to Scrap 401(k)s Gains Traction - ABC News


Obama is waiting for the proper "Crisis" in order to nationalize 401K and IRA accounts. The proceeds will be used to bail out underfunded union pensions - with the folks whose accounts are seized left to rely on some form of "expanded" Social Security (another entitlement program to be paid for by unborn children).
This was a mere suggestion from somebody not in the presidential administration which wasn't taken the least bit seriously. And Obama wasn't president yet when this woman spoke.

You've been warned. If you wish to ignore the flashing red lights, so be it.

It may not happen during Obama's term, but the ground work is definitely being laid to nationalize these assets. The government is waiting for the proper "Crisis" to do so.
 

akelch

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Pass the "Fair Tax" then we no long will be slaves to congress threatening cut our exemptions.
 

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