How much do you like your 401(k)?

[Dedman]

Because it may be in danger!

The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate worker’s retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.

http://www.carolinajournal.com/exclusiv ... ounts.html


Here is a bit more about the what and why of the plan.

http://www.house.gov/ed_workforce/testi ... rducci.pdf

[woodchip]

My post in the another topic:


\"Lets throw this into the mix. The Dems are stil talking like they want to take over your IRA's and 401k retirement accts. With Obama now going to take over as pres., there is a very good chance that may happen. The slow wits will react favorably to this as the sugar cube is the Demoscammers are saying they will roll the value back to pre-market crash value. Yippee-I-Yay compadres. What the plan holders don't understand is the savings, which were once the plan holders to do with and pass to family members if the plan holder died, now would belong solely to the govt.

Are you still Kie-Yi-Yipping along? The govt will now pay you a hefty 3% per annum Rolling Eyes Pretty cool huh?
The best part is since all the retirement funds are mostly in stocks, those stocks will have to be sold. Now how do you think the market will react to billions of shares being put up for sale? Go up?
Now along with all the other economic pograms Obama has proposed and no one to stop him from succeeding in implementing them, do you now start to get a picture of why the stock market is reacting to his win? You are very short sighted if you think Obama's win does not have something to do with the free fall.\"

So what the govt is doing in the time of a economic meltdown caused by the govt, is the very same govt is now looking for a cash infusion into THEIR coffers as they need money in this recessionary time also. A good source is your 401k program. While I read thru the plan I didn't see anything about future contributions being tax free. If not, now you have to pay taxes on your contribution thus another source of income for the govt.

Isn't socialism grand.

[Sedwick]

Here is a bit more about the what and why of the plan.

http://www.house.gov/ed_workforce/testi ... rducci.pdf

Page 2, line 7: what's a 410(k) plan?