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401k Confiscation
- Thread starter andrasnm
- Start date
My 401K allows me to get a portion as "hardship withdrawal" and the rest ONLY if I change jobs. NOBODY in its right mind will pay 10% penalty just to attempt to put it in a IRA that might be next for the "Fed play"....
Quote from telozo:
Of course you can take out your 401k money any time you want, but you have to pay taxes that were deferred, and a penalty on top, if you are not at least 59 1/2.
Zero. Like the IQs of the people posting that trash on those blogs.
Quote from andrasnm:
There are rumors of this on the "righty" blogs but recently my friend who also has a sizable 401K, mentioned.
What is the chance of the US Gov. seizing the 401K and making this new Gov Retirement Program?
Quote from Trader666:
Zero. Like the IQs of the people posting that trash on those blogs.
TIME is not a righty blog. As I mentioned whats at stake is the tax deferred benefit. But the idea that they will confescitate 401ks as a whole is laughable.
http://www.time.com/time/business/article/0,8599,1864139,00.html?imw=Y
Should the 401k Be Killed?
By Justin Fox
Thursday, Dec. 04, 2008
EXCERPT
Still, as she sat at the witness table on Oct. 7 at a hearing of the House Committee on Education and Labor, running through the litany of what's wrong with the 401(k) and other defined-contribution retirement plans â they have high fees, for one â Ghilarducci didn't think she was courting controversy. "I was saying things that seemed completely milquetoast," she recalls. Ghilarducci did bring up a bold proposal to replace the 401(k) with a mandatory, government-run pension plan and suggested that Congress immediately allow retirees to swap 401(k)s battered by the stock market's collapse for monthly payouts from the government. But she had floated both ideas before, to little effect.
Quote from Surdo:
ANY 401K can be "rolled" into an IRA, after you leave the employer. You can withdraw the money at any age with a 10% IRS penalty PLUS applicable tax on the principle.
You can begin withdrawals from an IRA at any age without tax penalty if you set up the withdrawals as "substantially equal periodic payments". It's part of Section 72 of the IRS regs. For example, you take out X% of the balance each year where X is determined based on your age when you begin withdrawals. There are different methods for determining your withdrawal amount and once you begin you can't stop for 5 years or until you're 59 1/2, whichever is longer.
Lots of rules apply but it works. You pay the taxes but NO PENALTY. Google "72T Distribution" if you want to know more.
Quote from andrasnm:
What is the chance of the US Gov. seizing the 401K and making this new Gov Retirement Program?
Why is this a bad thing? The patron saint of modern conservatism - Ronald Reagan - did exactly that 25 years ago when he increased payroll taxes and dedicated them to purchasing Treasuries.
The OP wasn't talking about TIME, they specifically referred to " 'righty' blogs."
There never was a proposal to confiscate anything, only to allow people to voluntarily convert, which was twisted by right wing extremists to scare sheeple.
http://www.factcheck.org/askfactche...democrats_talking_about_confiscating_ira.html
There never was a proposal to confiscate anything, only to allow people to voluntarily convert, which was twisted by right wing extremists to scare sheeple.
http://www.factcheck.org/askfactche...democrats_talking_about_confiscating_ira.html
Quote from lrm21:
TIME is not a righty blog.