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Home Front: Culture Wars
Follow-up on "401(k) Savings" Post from Friday
2010-02-21
Found out some more about this.

Treasury and Labor have asked for comments on a voluntary (for the moment) requirement that employers allow leaving employees to buy lifetime annunities from the government with their 401(k)s (if I understand what they mean) instead of rolling over the money to a self-directed IRA, etc. A plan for the terminally stupid who aspire to poverty/slavery in their old age Leftists, one supposes.

Hit the link for a Fox Business report on the comment request.

The request for comments is here (here's a Labor Dept. press release).

Deadline for comments is, I believe, May 3 (or thereabouts).

Camel's nose, etc.
Posted by:Barbara Skolaut

#8  The GIvernment will changes the rules so that no one will participate. This will increase the tax revenue as 3-6% of payrolls become taxable.

At the same time they will basically start 'borrowing' againist everyone's 401K.

It may be in my best interest to borrow from my 401K (and pay off my mortgage) and drop my contribution to the lowest acceptable percentage (1%) where it takes me a lifetime to pay myself back.
Posted by: airandee   2010-02-21 15:16  

#7  I went to the website this morning to read the RFI.

My read is that the problem they say they seek to address is when people get a lump sum check for their deferred compensation. They seem to want people to put it an annuity so that they have payout over their life and don't spend it all before they die. There is nothing in the RFI document that leads you to believe the annuity would be administered by the government or even directed toward treasury securities. They're just asking for comment on the idea of forcing the employer to advise the retiree about annuities and have an annuity available for sign up at time for retirement.

What the real plans are is not apparent from all the gobbledy gook there.

I then went to regulation.gov to try to give on line input. The forms I got required me to drop all NoScript protection. I then got what looked like a pdf of the RFI superimposed on the website. I found the link to the input form and clicked on it. It took me to a new form with only the regulation.gov banner, no input form. I'll bet you have to allow cookies to get that, and I just don't want Uncle to get that access.
Posted by: Nimble Spemble   2010-02-21 14:14  

#6  "what makes the Government idiots believe that after they've confiscated the IRAs/401Ks, ANYONE will ever put another dime into the damned things?"

They aren't concerned with that. They just want to confiscate all that exists now to finance government debt. And when you die they only have to pay out 50% of it so they get a dollar now to finance debt and only have to pay out 50 cents on the dollar due to the death tax. If they can pass health care, they can speed that process up and begin knocking off the elderly early.

So for every dollar they take from you, they pay interest for as long as you are alive. Then when you die, they take half the cash. They get a direct financial incentive for old people to die. That, when coupled with government controlling health care should scare the living crap out of boomers.
Posted by: crosspatch   2010-02-21 14:06  

#5  How could they possibly go wrong The gov't theives are set to win three ways:

a. Harvest billions in immediate tax revenues from folks cashing in their plans out of fear.
b. Exploit the funds via voluntary or mandetory transfers to Gov't bonds (as opposed to rolling to a self-directed, tax deferred IRA).
c. While destroying the economy and legitimate fund viability, assume ownership of the funds via FDIC-Lite 'protection' schemes, thus availing themselves to billons of earner investments.
Posted by: Besoeker   2010-02-21 13:39  

#4  The plan includes eventually forcing people to 'contribute' to government funds via additional taxation.
Posted by: lotp   2010-02-21 13:37  

#3  I think that's the point, Mike.

They just want to confiscate your hard-earned money directly.
Posted by: Barbara Skolaut   2010-02-21 13:35  

#2  Mike - In the cold, black heart of the hardcore statist, not having anyone put a dime into a 401(k) would be Mission Accomplished.

"Liberalism" is such a misnomer for these people. They aspire to control. For our own good, of course.
Posted by: eLarson   2010-02-21 13:34  

#1  ...Maybe I'm missing something, but what makes the Government idiots believe that after they've confiscated the IRAs/401Ks, ANYONE will ever put another dime into the damned things?

Mike
Posted by: Mike Kozlowski   2010-02-21 13:27  

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