Article

2017-10-21 Economy

Financial industry worried GOP tax plan will change 401(k)s

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Posted by Besoeker 2017-10-21 07:29|| || Front Page|| [2 views ] Top

#1 Why would a federal government which has absolutely no concept of fiscal accountability, saving money, or thrift encourage it's citizens to save for retirement, or for anything else for that matter ?

Posted by Besoeker 2017-10-21 07:39|| 2017-10-21 07:39|| Front Page Top

#2 If the GIVERnment really wants to do good by the people as it relates to 401k retirement they should encourage wealth building by the working class:
1. Have unlimited tax deferred savings until a maximum level based on year of birth. Get people to the build a sizable nest egg as quickly as possible.
2. Remove the tax deferred benefit once the balance reaches and stays above the max.
3. Place large penalties for early withdraws by not allowing benefit to return if withdraw is post-maximum reached

For example: if born in 1980 you can save up to 1 million. If you withdraw 200k early, pay the penalty and your new max is 800k.

This will encourage saving early and often but also stop taxpayers from subsidizing those that no longer need the tax deferred benefit while building wealth.

Posted by airandee 2017-10-21 09:04|| 2017-10-21 09:04|| Front Page Top

#3 I have a better idea - exempt interest and dividends from taxation. All this discussion disappears.

Posted by Raj 2017-10-21 12:31|| 2017-10-21 12:31|| Front Page Top

#4 ...and capital gains!

Posted by Raj 2017-10-21 12:32|| 2017-10-21 12:32|| Front Page Top

#5 But industry groups are worried that dramatically lowering the cap on pre-tax contributions would reduce the amount that people save for their retirement.

Saving at @.0001% interest

Posted by Skidmark 2017-10-21 14:11|| 2017-10-21 14:11|| Front Page Top

21:37 Alaska Paul
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