Saturday, April 13, 2013

Watch your 401(K)

Remember all that advise to save for retirement, to put your savings in a 401(K) account?  Tax-free savings that would only be taxed when you retired?  Or to pay taxes now, convert to a Roth, and have tax-free income in your later years?

Well, our President intends to try and tax that money.  Why?  Simple.
The White House explanation is that some people have accumulated "substantially more than is needed to fund reasonable levels of retirement saving." So Mr. Obama proposes to "limit an individual's total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million for someone retiring in 2013."
So, where does the Government get off telling us that we have "substantially more than is needed to fund reasonable levels of retirement savings"?  What I have is none of the Government's business.  When I follow the rules, stay out of trouble, and try to live my life, the Government has no damned business telling me what I can acquire, what I can save, or what I need to spend.

In my opinion, they have no business telling me what rifles I can have, nor even what magazines I can have.  The Government had best remember that the three boxes to social change are the soap box, the ballot box and the cartridge box.  I have all three.


drjim said...

I keep working on my wife to get her to agree that I should close-out the 401(k) plans I still have, take the damn tax hit, but the money into tangibles.

It's a delicate situation, but I don't want to lose 15 years worth of savings!

Anonymous said...

So if obama thinks $205,000 is ENOUGH to live on; then I propose that he send the government a check for $400,000.
Didn't he just send in his tax return for $600,000? So he should only be allowed to keep $205,000. Seems fair to me...if thats all he wants ME to live on!