Does the government want your retirement account?

[Younggun]

They do that, and then some, with every paycheck I get.

 

[Mexican_Hippie]

If you're sticking with more tangible assets vs just paper you may also consider partial ownership in a small business you know and trust. Or maybe some land that produces enough to at least pay it's taxes each year.

Some things to consider.

Not sure I'd want a giant pile of Gold in my house - strictly from a security perspective.

 

[Mexican_Hippie]

They do that, and then some, with every paycheck I get.

I stopped looking at my paycheck breakdown. Talk about "radicalizing" someone. It makes me want to slap their mommas!

 

[Brains]

I calculated how many min wage salaries I pay in taxes every week once. Don't ever do that.

 

[A.Texas.Yankee]

This is a stupid question. Of course they government wants our money. They think they're can spend it better than we can. That's what taxes are now, another entity spending your money "wisely". I think this is plausible, but not just 401k or retirement accounts... ANY account could potentially be victimized. Probably not going to happen relatively soon, but soon enough.

Sent From This Tablet They Call A Phone, The G Flex

 

[Ole Cowboy]

Tin foil hat talk or no, Ole Cowboy, the Libs are discussing various ways to change our current system of saving for retirement because it “exacerbates income and wealth inequalities” in their opinions. One of the new changes they're proposing is a Death Tax of between 50 and 100%!
Read more here:

http://www.carolinajournal.com/exclusives/dems-target-private-retirement-accounts.html

This isn't tin foil hat. These are real discussions that are happening.

I would use only a private investment account that you can transfer and liquidate.

They never pass new rules without telegraphing them. They're not going to throw them up overnight. The problem is that inside a 401k you can't just initiate a wire transfer and pull your funds out. It takes time and paperwork. And inside the investment vehicle you can only pick from options the provider offers you.

You are missing the point, they do not have to take, they control it and can control it even more, there is no need to take when already control. They are operating covertly, taking it would be overtly, they won't do that due to the outpour of anger across the US. So they just cruise along letting you THINK you have it.

 

[JohnnyLoco]

You are missing the point, they do not have to take, they control it and can control it even more, there is no need to take when already control. They are operating covertly, taking it would be overtly, they won't do that due to the outpour of anger across the US. So they just cruise along letting you THINK you have it.

I think you are right in describing their typical modus operandi. The fear of outright anger and revolt is what usually keeps them in check. But the thing is, the way things are currently going, history says it must eventually come to a catastrophic and violent end.

I think what the others are describing is closer to the beginning of the unraveling of things.

This is why they are after the guns of course and probably the main reason for the militarization of the police.

 

[Ole Cowboy]

I think you are right in describing their typical modus operandi. The fear of outright anger and revolt is what usually keeps them in check. But the thing is, the way things are currently going, history says it must eventually come to a catastrophic and violent end.

I think what the others are describing is closer to the beginning of the unraveling of things.

This is why they are after the guns of course and probably the main reason for the militarization of the police.

concur

 

[ROGER4314]

I closed out my 401k but had to leave 30 cents in the account. That 30 cents is now 3 cents. I buried the money in a coffee can. It's much safer there!

Flash

 

[karlac]

I don't pay anything in to mine, and I would bail on SS if I could do so without the gov locking down every account I have.

That's the worst investment EVER. No offense to those who's retirements my payments are funding. You most likely paid in too. But I'll be lucky if I see 50 cents on the dollar for what I pay in, I feel it's more likely I'll se nothing after another 30 years of paying in.

Some are worried about 401Ks when our money is already being stolen in this half assed Ponzie scheme.

Want to see exactly where that money is going?

Been passing by a SS office on the way to a job site in SW Houston every morning for the past four weeks. There is a line of 50 or so outside each morning waiting for the doors to open, and you would expect that most of those waiting to get in would be in their mid sixties.

Not the case.

95% of those standing in line are visibly far too young to be drawing SS, are ethnic minorities, and the line includes a dozen young women with children each day.

IOW, your SS dollars, and the ones I paid in for 50+ years, are being used to buy Democrat votes.

 

[Odiferous]

Every now and then Liberals float the idea of a "wealth tax."

Imagine 10% of your retirement account disappearing every year.

 

[AustinN4]

Every now and then Liberals float the idea of a "wealth tax." Imagine 10% of your retirement account disappearing every year.

Already have it - manditory withdrawls from tax-deferred IRAs at age 70.5 are taxed at ordinary income rates up to 39.6%:

Tax Rates	Single	Head of Household	Married Filing Separately	Married Filing Jointly / Qualifying Widow or Widower
Ordinary Income	Long Term Capital Gains and Qualified Dividends	Taxable Income over	to	Taxable Income over	to	Taxable Income over	to	Taxable Income over	to
10%	0%	$0	$9,075	$0	$12,950	$0	$9,075	$0	$18,150
15%	0%	9,075	36,900	12,950	49,400	9,075	36,900	18,150	73,800
25%	15%	36,900	89,350	49,400	127,550	36,900	74,425	73,800	148,850
28%	15%	89,350	186,350	127,550	206,600	74,425	113,425	148,850	226,850
33%	15%	186,350	405,100	206,600	405,100	113,425	202,550	226,850	405,100
35%	15%	405,100	406,750	405,100	432,200	202,550	228,800	405,100	457,600
39.6%	20%	406,750	--	432,200	--	228,800	--	457,600	--

 

[Texas42]

Why is it a shock to pay taxes on tax deferred accounts when you withdrawal them?

 

[AustinN4]

Why is it a shock to pay taxes on tax deferred accounts when you withdrawal them?

The shock is when your withdrawls are added to any other ordinary income you have, you frequently end up paying a higher rate than you deferred. Lesson learned, don't overfund tax-deferred accounts and utilize a Roth for excess amounts, if you can.

Edited to add: I use the word overfunded to mean in relation to your retirement needs and not as to what is allowable.

 

[karlac]

The shock is when your withdrawls are added to any other ordinary income you have, you frequently end up paying a higher rate than you deferred. Lesson learned, don't overfund tax-deferred accounts and utilize a Roth for excess amounts, if you can.

Edited to add: I use the word overfunded to mean in relation to your retirement needs and not as to what is allowable.

Absolutely good advice and something to pay attention to early in your working career. Although not retired because I enjoy what I do, will do so as long as possible, and fairly well paid for doing so, I'm therefore taxed at a hefty rate on RMD withdrawals.

That said, better to have it and be taxed, then not have it at all.

 

[AustinN4]

That said, better to have it and be taxed, then not have it at all.

Right on, brother! It is obvious you can relate to what I was saying.

I started putting money in IRAs the first year they were legal and maxed out all tax deferred contributions, including 401Ks, every year since and find myself in a higher tax bracket in my old age than I expected.

 

[Ole Cowboy]

I knew I had some business expenses coming up and I made some business decisions that led to my cashing in my entire IRA and paying zero tax on it. I bought a lot of equipment and other business investments is how I did it. But you really need to be looking down the road and planning to do something like that.

 

[karlac]

I knew I had some business expenses coming up and I made some business decisions that led to my cashing in my entire IRA and paying zero tax on it. I bought a lot of equipment and other business investments is how I did it. But you really need to be looking down the road and planning to do something like that.

Section 179 is a small business man's friend.

 

[Ole Cowboy]

Section 179 is a small business man's friend.

LOL you are not telling me nothin...I sure bought a LOT of equipment that year!

 

[AustinN4]

Section 179 is a small business man's friend.

Did some of that also. For the last 5 years or so, I have been converting some amount of IRA $ to Roth. I can easily estimate my income since I don't work anymore and I only convert as much as i can to stay with a certain tax bracket and will do the same with some portion of my MRW $, if allowed, since I have to pay tax on it anyway.