401k Tax

[kv968]

Looks like they're trying to find ways to tap people's 401k's:

Feds Eye Retirement-Fund Tax

[jpg7n16]

That's terrible. I think we should vote out anyone who votes for that plan.


"Hey Social Security is running us into the ground. You know what would be a great idea?? Let's make it harder for the people who'll depend on Social Security to save for retirment! That's a great idea huh?

Let's limit the amount they can contribute, and remove the tax incentive to do so. I realize they don't have a pension, or any other real means of saving, but what the heck - we need money."

Terrible.

[jpg7n16]

Also see this article:

Advisers worry about future of retirement savings incentives - InvestmentNews

[bjl584]

That's awful. Hopefully this never gets past the talking and will never even come up for a vote.

[97guns]

i told you guys stuff like this is coming down soon, this is just the first baby step into full confiscation. you will not see it over night but they will slowly chip away, just like gun laws they take it little by little until they have it all - pensions are in jeopardy as well, actually the american retirement will be a thing of the past.

if europe defaults it will affect money markets and bonds that many pensions hold LARGE positions in. dont believe me, take a look at what your pension is invested in

[GrimJack]

i told you guys stuff like this is coming down soon, this is just the first baby step into full confiscation. you will not see it over night but they will slowly chip away, just like gun laws they take it little by little until they have it all - pensions are in jeopardy as well, actually the american retirement will be a thing of the past.

if europe defaults it will affect money markets and bonds that many pensions hold LARGE positions in. dont believe me, take a look at what your pension is invested in

Simetimes you read like a parody - reducing everything to 'just like gun laws' but then your handle is not subtle either. Most of your posts make sense until you drag guns into them.

[bjl584]

So, if this goes into law, if you no longer get a pretax contribution on the front end, then will a 401K act more like a Roth (an after tax contribution)? Meaning that you would not be taxed on the backend when you start taking distributions?

[jpg7n16]

So, if this goes into law, if you no longer get a pretax contribution on the front end, then will a 401K act more like a Roth (an after tax contribution)? Meaning that you would not be taxed on the backend when you start taking distributions?

No. It would likely become like a non-deductible IRA contribution.

You pay tax on your contribution up front, and tax on the earnings portion upon withdrawal. You would have to keep track of how much has been contributed to your plan, to know what your basis is.


They aren't going to tax you on the same dollar twice. (yet)

[bjl584]

No. It would likely become like a non-deductible IRA contribution.

You pay tax on your contribution up front, and tax on the earnings portion upon withdrawal. You would have to keep track of how much has been contributed to your plan, to know what your basis is.


They aren't going to tax you on the same dollar twice. (yet)

Hopefully this is just a trial balloon that is floating out there that never gets any traction.

[jpg7n16]

Hopefully this is just a trial balloon that is floating out there that never gets any traction.

Agreed! Everyone bust out your BB guns!

[bjl584]

Agreed! Everyone bust out your BB guns!

Locked and loaded jpg!