Sunday, November 7, 2010

Uncle Sam Wants Your 401(k)

Ida May Fuller, the first recipientImage via Wikipedia
If you thought you only had to worry about the government messing up Social Security, think again. Now you have something else to worry about, your 401(k). If  Sen. Tom Harkin, D-Iowa and Sen. Bernie Sanders, I-Vt. get their way your 401(k) will be illegal. On Oct. 8, 2010, the two senators from Health, Education, Labor and Pensions (HELP) Committee held a hearing on"Retirement Security in America." Among the proposals discussed was"Guaranteed Retirement Accounts" or GRA's.The purpose of the GRA proposal is to force Americans to stop putting their retirement savings in 401(k) accounts and send your money to the government instead. Your retirement tax deduction would also disappear. This proposal states that you would receive 2% interest on your money. You would receive your monthly payment out it. If you died with a surviving spouse, they would receive only 50% of the balance.    

In February, President Obama released the"Annual Report of the White House Task Force on the Middle Class". GRAs are among the proposals recommended in the report for further study.

Can the government believe that we would give up our 401(k)'s to them? People already have little faith in their Representatives. To hand over 3 trillion dollars of our money to the people who already botched the Social Security system is insane.

The facts of this proposal are still in flux. It would be to every ones benefit to keep an eye out for further developments. But with the shift in power in the House of Representatives this may be D.O.A.

4 comments:

  1. I've been following this story closely. And it is scary indeed. Does private property have no meaning anymore? After the financial fiasco that is social security, the pols are hungry for more money to redistribute in the name of social justice. The is an absolutely horrible deal for the working class and should be rejected outright. The 11/2 elections should stall this proposal for at least 2 more years. But the "do-gooders" in Congress need more money, much more money to support their lame-brain schemes.

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  2. Exactly. I am trying to get the word out on this mess. People need to have their eyes open to this over stepping of congress.

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  3. Heck- I have been paying them my SS tax for 35 years and they are talking about upping when I would get it. Just give it all back to me - at %5 and let me care for my own retirement!

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  4. @Janette I would like to get all mine back too. But it's not going to happen. They need it and more. Thats what's behind the new plan. It's been determined that this new plan is a back door bailout of the Union's insolvent retirement fund. I will be following this in the years ahead.

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