Could the government decide to take 25% (or, pick your %) off the top of every 401(k) worth more than $500k?

"The Federal Government only has authority to tax income. "

What would it take to change that authority? Congressional approval?

+1.

Precious Roy wrote:

The Federal Government only has authority to tax income.

Not quite. 4% of Government revenues come from customs and excise.

Short answer. Yes.

They can change tax policy any time they dang well please.

Yes, but first they'll take your guns and bible.

They could nationalize all retirement accounts, if you want to get all dystopian about it.

But taxing retirement income would be a very easy thing to do given how most people do not have any retirement savings. You just start a campaign to demonize those that saved as "wealthy" and "privileged" and the dirty masses would eat it up.

They could do that... Then the government would have to pay it back plus a ton of interest in welfare when people run out of money. Our debt is only about 1/3 what the headline number states. The rest isn't US debt. Keep that in mind folks!

Precious Roy wrote:

I know a guy who does not contribute to a 401k or any other tax deferred retirement plan because he believes that this is going to happen. But he is an idiot because he is getting taxed twice and the hike on taxes for 401k plans would have to be off the charts to offset the double taxation incurred by going outside a 401k plan.

How is he taxed twice?

He tax post-tax income and puts in in some savings account where all of it can be spent later.

How is it taxed again?

obama already targeted savers which he determined would disproportionately affect those other people so he was down wit it....

http://m1.marketwatch.com/articles/BL-235B-1060?mobile=y&mobile=y

I got mine in a ROTH IRA and a ROTH 401k so F yall

Bsnsns wrote:

I got mine in a ROTH IRA and a ROTH 401k so F yall

Oh, well that changes everything. The Government certainly won't and can't change the rules regarding Roth accounts.

Out of one side of their mouths they whine that the government is gonna take everything away from them.

Out the other side they whine about terrorists and proudly throw away all their rights in the name of patriotism.

They're like Dr. Seuss's sneetches, running madly back and forth between two polar extremes, while McBean watches and laughs.

A far better way to raise revenue would be to tax the mutual fund companies that operate the 401k's. They have become ridiculously bloated by stealing money from retirement accounts.

I recently used an online tool to project the cost in fees for my wife's retirement account. She's a teacher, so this is not a huge account. However, with the 0.75% expense ratio, she is projected to pay the mutual fund company more than $83,000 over the next 20 years.

Of course, I moved her money into another fund. But 0.75% is about average for these accounts.

Wake up folks. You are being scammed!!!

post tax not taxed wrote:

Not if you contribute post-tax monies to your 401K.

Um... Prez *did* propose taxing 529 plans... (analogous to Roth IRA/401k)

Prez also proposes to "cap" tax-advantage retirement savings (which amount to the same thing as taxing retirement savings--at least for those who save a lot).

Labor economist and Obama advisor Teresa Ghilarducci proposes eliminating the tax break people receive when they put money into 401(k)s and use the savings to create an entirely new system run by the government. Her alternative would "piggyback on top of Social Security" with a pooled fund Americans can contribute to, but is administered by the government. A certain rate of return is guaranteed.

Bsnsns wrote:

I got mine in a ROTH IRA and a ROTH 401k so F yall

See above.

Bad Wigins wrote:

Out of one side of their mouths they whine that the government is gonna take everything away from them.

Out the other side they whine about terrorists and proudly throw away all their rights in the name of patriotism.

They're like Dr. Seuss's sneetches, running madly back and forth between two polar extremes, while McBean watches and laughs.

And you're like a typical liberal idiot, substituting false generalizations for any semblance of rational thought.

Dumb Wigins wrote:

Bad Wigins wrote:

Out of one side of their mouths they whine that the government is gonna take everything away from them.

Out the other side they whine about terrorists and proudly throw away all their rights in the name of patriotism.

They're like Dr. Seuss's sneetches, running madly back and forth between two polar extremes, while McBean watches and laughs.

And you're like a typical liberal idiot, substituting false generalizations for any semblance of rational thought.

lol at your handle.

nutty buddy wrote:

Dumb Wigins wrote:

And you're like a typical liberal idiot, substituting false generalizations for any semblance of rational thought.

lol at your handle.

Throwing away your right to be a terrorist in protected secrecy reduces the cost of identifying and monitoring terrorists. But we all know what Liberals are most terrified of is a slimmer, more cost-effective government. Me, I want to save the some $ because I know where those $$ come from.

POD!