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Is it not a rumour anymore? Your 401K if you have one, will be taxed.

http://online.wsj.com/article/SB122662401729126813.html
What is there to stop the retirees from retrieving their eligible funds from the market at the end of this year when this goes into effect? The economy will surely suffer some more will it not?
What in your opinion is the effect of another mass exodus from the market when retirees hoard their money for fear of a 39.6% tax on it?

 
Anonymous

Asked by Anonymous at 10:40 AM on Sep. 22, 2010 in Politics & Current Events

This question is closed.
Answers (7)
  • I think the problem is with how much the tax could go up. Then of course there is also the thing where they are actually considering nationalizing them..which will put the govt in control. We all know how well they managed Social Security don't we!

    The quote ^^ about "letting the govt do it INSTEAD" cracked me up! What if we don't want to SELL it? I guess it will be to bad so sad!
    yourspecialkid

    Answer by yourspecialkid at 11:49 AM on Sep. 22, 2010

  • Whether or not it's a rumour, most retirees learned long ago not to trust the gubmint with their money. It may not be good for the market but it is definitely better for retirees.

    At this point I'd rather 'give' my money to a burglar than the gubmint. At least the burglar is honest about his/her intent and there is a chance of recourse under the law.
    Farmlady09

    Answer by Farmlady09 at 11:03 AM on Sep. 22, 2010

  • This has not been passed but just because it was proposed a year ago and hasn't happened yet don't count it out. When you hear one of these outrageous proposals you can be sure they are being considered. After all, the Dems can't do everything they want in the first 2 yrs.

    That being said, I love this paragraph! NOT
    The main liberal objection to 401(k)s seems to be that they let average Americans control their own investment decisions for retirement. As Shlomo Benartzi, a professor at UCLA's Anderson business school, told Mr. Miller's committee, "Individuals have a tendency to buy at the peak, and then panic when the markets drop and sell at the bottom." Better to have the government do this instead.

    Doesn't that just make you sick? If not, it should.
    itsmesteph11

    Answer by itsmesteph11 at 11:05 AM on Sep. 22, 2010

  • Do you have any links that are more current? This one is from November of 2008.

    QuinnMae

    Answer by QuinnMae at 10:43 AM on Sep. 22, 2010

  • I was under the impression that theregular 401k was being taxed when taken out already? And if you have a choice of getting a Roth 401k which you would pay the taxes for upfront on the money being put in and the money that you take out plus it's interest in the end will be tax free. Which would be a better choice in the long run.
    sheli2007

    Answer by sheli2007 at 11:23 AM on Sep. 22, 2010

  • All retirement money....401K's, everything IS taxed when you withdraw the whole amount. DId you not KNOW that?
    Anonymous

    Answer by Anonymous at 11:27 AM on Sep. 22, 2010

  • Sheli2007 I was under the impression that the regular 401k was being taxed when taken out already? And if you have a choice of getting a Roth 401k which you would pay the taxes for upfront on the money being put in and the money that you take out plus it's interest in the end will be tax free. Which would be a better choice in the long run.


    Yes you are correct.  I don't know what everyone is complaining about.  Maybe they are talking about changing the excise tax from 10%  to this 39.6%, where ever this percentage came from.  Rumors.

    momentofpeace

    Answer by momentofpeace at 1:20 PM on Sep. 22, 2010

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