House discusses 401k/IRA confiscation

[97guns]

House discusses 401k/IRA confiscation - ALIPAC


Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts — including 401(k)s and IRAs — and convert them to accounts managed by the Social Security Administration.Triggered by the financial crisis the past two months, the hearings reportedly were meant to stem losses incurred by many workers and retirees whose 401(k) and IRA balances have been shrinking rapidly.

[bjl584]

This has been talked about before, but it never made it past the talking phase. I don't see this ever becoming a reality.

[kv968]

Yeah, there's a real solution. Start another quasi-SSI system on top of the one we already have that's underfunded

[Blessed]

EEEEKKK. That didn't help my fear of the markets any. I wish the gov would keep there hands out of everything! They cant manages SS so no way could they manage this. That ranks right up there with the idea of putting the railroad pension fund into SS.

[jpg7n16]

I think this post reminds us all that we need to be very careful where we look for news articles.

This is a link to a very politically slanted blog post, which copies another politically slanted blog post, which copies a politically slanted journal article, which misstates the actual event and makes it appear as though it were a legit news article.


Do you have any legitimate evidence that such a plan is in the works???



I think you should get your facts straight before spreading this stupid idea.

FactCheck.org : IRAs, 401(k)s and You


And please watch the video of the hearing where they got their info. Link in quote below.

From: FactCheck.org : IRAs, 401(k)s and You

At the Oct. 7 hearing, Ghilarducci further proposed that Congress address the recent stock market drop by allowing workers to trade their existing 401(k) or IRA accounts for her proposed Guaranteed Retirement Accounts. (Her words can be heard starting at 33 minutes and 23 seconds into the video of the hearing.)

"Ghilarducci, Oct. 7: I propose … that the Congress allow workers to swap out their 401k assets, perhaps at August levels, for a Guaranteed Retirement Account. Just a one-time swap, trading your 401(k) for a Guaranteed Retirement Account that will be composed of the equivalent of government bonds that pay a 3 percent real return."

Note that she used the word "allow." This proposed swap would be voluntary, the opposite of a seizure or confiscation. And many might find such a trade attractive. Note also that she said "perhaps at August levels," suggesting that Congress might replenish the value of beaten-down stocks in IRAs and 401(k) accounts before making the swap. That would be quite a generous offer; the Dow Jones Industrial Average dropped nearly 17 percent between August 1 and the day of the hearing. Far from proposing to "confiscate" accounts, she proposed to restore their value. Congress has not acted on her suggestions.



"Teresa Ghilarducci, Nov. 18: It is utterly ridiculous [to suppose] that I advocate seizing 401k assets."

[Wino]

Just to add a bit, factcheck.org has been shown to be partisan and not too trustworthy itself. Not saying they're lying. Just saying they're liars.

[feh]

Do you have any legitimate evidence that such a plan is in the works???

Of course not. This meme was first seen 4 years ago. Occasionally it reappears.

It amazes me how some people lap this stuff up.

[bjl584]

Of course not. This meme was first seen 4 years ago. Occasionally it reappears.

It amazes me how some people lap this stuff up.

That's what I was thinking. I knew I saw this story before. I think back in early 2009 just after the housing crisis and economic colapse.

[jpg7n16]

Just to add a bit, factcheck.org has been shown to be partisan and not too trustworthy itself. Not saying they're lying. Just saying they're liars.

Just to add a bit, there is a link to the actual hearing listed in my post above.

If you don't believe factcheck.org, then just watch the video for yourself and make up your own mind about the facts.

Of course not.

Exactly

It amazes me how some people lap this stuff up.

I hear it from clients who are afraid that the gov will steal their hard earned money. It's a stupid idea, I'm not sure why people want to spread the word on it. And it causes more harm than good.

Just imagine trying to talk a 40 year old client with a few 100k in their IRA, who wants to cash it all out today because he's afraid that the gov will confiscate his balance if he doesn't.

"That's not gonna happen."
"Yes it is, you just don't want to believe it because you work in this industry."
"But you'll be taxed at the highest marginal rate, and incur a 10% penalty. You'll lose half the money to taxes."
"Better than losing all of it"