Market Crash and your 401k..."DC Wants Your 401(k) Money"

[WhiskeyGirl]

When the market crashed in 2008, some were pushing Government Savings/Retirement Accounts 'GSA/GRA'.  Not the best deal for savers...government would keep more of your money and you couldn't give away the remainder when you died.

DC Wants Your 401(k) Money

By Elizabeth MacDonald

Published July 12, 2011

The federal Office of Management and Budget says the government forgoes collecting about $143 billion a year due to retirement saving deductions for pensions and defined contribution plans cost, or 401(k)s. That tax revenue is likely lower, because taxpayers have to pay taxes on draw downs from these plans in retirement.

Closing loopholes?

Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis reportedly testified once again about the issue, noting: "There's no evidence that it [401(k) deductibility] increases savings; much of the academic literature shows that higher income people are moving investments they would have made anyway [in taxable accounts] to a tax-preferred account. And there are 25 million taxpayers in the bottom two quartiles who don't take deductions, so they're getting no subsidy at all from the federal government on their contributions."

When you read comments like this, ask yourself: What do experts think DC does with our tax dollars? And hasn't Congress already raided and spent Social Security funds? Has Congress's administration of your tax money been so state of the art? Do experts like this want all of us to lose our retirement savings and be on the government dole via Medicare?

read more - http://www.foxbusiness.com/markets/2011/07/12/dc-wants-your-401k-money

[WhiskeyGirl]

Brian Graff, executive director and chief executive of the American Society of Pension Professionals and Actuaries, is worried that tax-deferred retirement savings contributions might be on the chopping block in order to make up lost revenue.

“If you're lowering rates, that money has to come from somewhere,” he said.

“We're in that basket that could get cut to make that math work out — just like in 1986, when the 401(k) contribution limit was cut by more than 75%. We're raising awareness that the fight is coming, and people need to get ready,” Mr. Graff said.

http://www.investmentnews.com/article/20110724/REG/307249982

[WhiskeyGirl]

On the same day, Human Events reported that, “In February, the White House released its ‘Annual Report on the Middle Class’ containing new regulations favored by Big Labor including a bailout of critically underfunded union pension plans through ‘retirement security’ options.

The radical solution most favored by Big Labor is the seizure of private 401(k) plans for government disbursement -- which lets them off the hook for their collapsing retirement scheme.  And, of course, the Obama administration is eager to accommodate their buddies.

Vice President Joe Biden floated the idea, called “Guaranteed Retirement Accounts” (GRAs), in the February ‘Middle Class’ report.”

http://www.examiner.com/christianity-politics-in-national/euro-a-political-prison-socialism-not-working