Government to confiscate 401k and IRA

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Offline Nailer

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Government to confiscate 401k and IRA
« on: October 11, 2010, 07:44:42 am »
US Departments of Labor and Treasury Schedule Hearing on Confiscation of Private Retirement Accounts

By Patrick A. Heller on September 1st, 2010


On August 26, the US Department of Labor issued a news release ( [link to www.dol.gov] It lists the agenda for the joint hearings being held with the Department of Treasury September 14-15, 2010 on what is euphemistically called “lifetime income options for retirement plans.” The hearings are being conducted by the Labor Department’s Employee Benefits Security Administration.

I don’t like speaking in tabloid-style terms, but the unstated agenda of these hearings, as I understand it, is to push for the US government to eventually nationalize (confiscate) all assets in private Individual Retirement Accounts (IRAs) and 401K plans!

The US government is desperate to get its hands on private assets to help cover soaring budget deficits and debts, and this is simply the largest and easiest piggy bank that could be seized. The Investment Company Institute estimates that at the end of 2008 that there were $3.613 trillion of assets in IRAs and $2.350 trillion of assets in 401K plans.

Read more and weep at link
http://news.coinupdate.com/us-departments-of-labor-and-treasury-schedule-hearing-on-confiscation-of-private-retirement-accounts-0431/


Democrats in the Senate on Thursday held a recess hearing covering a taxpayer bailout of union pensions and a plan to seize private 401(k) plans to more "fairly" distribute taxpayer-funded pensions to everyone.

I called this one a long time ago, and unfortunately, I am sad to report that they're actually trying to figure out how to do it.

If there's a pitchfork moment in this country it had better show up fairly soon, because if this report is accurate you can bet that these clowns are going to find a way to attach this in some obscure section of a 2,000+ page "must pass" bill - another one of those "you have to pass it so you can read it" deals.

I hate it when I'm right. I hate it even more when tens of millions of Americans are going to get reamed to pay for the crimes of the handful on Wall Street, and their crony enablers in Washington DC.

And by the way - you don't hold hearings on something you don't intend to do.
http://market-ticker.org/cgi-ticker/akcs-www?post=168743
I am a realist that is slightly conservative yet I have some republican demeanor that can turn democrat when I feel the urge to flip independant.
 
The truth shall set you free, if not a 45ACP round will do the trick.. HEHE

Offline Nailer

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Re: Government to confiscate 401k and IRA
« Reply #1 on: October 11, 2010, 07:47:39 am »

tax tax tax the working people is the governments solution to all problems


In a nutshell, under the GRA system government would seize private 401(k) accounts, setting up an additional 5% mandatory payroll tax to dole out a "fair" pension to everyone using that confiscated money coupled with the mandated contributions. This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending.

http://www.humanevents.com/article.php?id=39336
I am a realist that is slightly conservative yet I have some republican demeanor that can turn democrat when I feel the urge to flip independant.
 
The truth shall set you free, if not a 45ACP round will do the trick.. HEHE

Offline Nailer

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Re: Government to confiscate 401k and IRA
« Reply #2 on: October 11, 2010, 07:50:43 am »


Obama Needs Your 401(k) to Balance His Budget

The Obama administration is “taking the first steps to confiscate retirement dollars,” according to Dr. Jerome Corsi who predicts that the end result will be retirees with 401(k) plans holding near-worthless government debt “that will be paid off in a devalued currency worth…pennies on the dollar.” by Bob Adelmann

Obama Administration Plans to Seize 401(k) Retirement Accounts

One aspect of a new and improved federal regulatory scheme outlined in the Annual Report on the Middle Class is the seizure of 401(k) retirement plans and the subsequent government-administered disbursement of the funds. by Joe Wolverton, II

http://www.ronpaulforums.com/showpost.php?p=2925830&postcount=2
I am a realist that is slightly conservative yet I have some republican demeanor that can turn democrat when I feel the urge to flip independant.
 
The truth shall set you free, if not a 45ACP round will do the trick.. HEHE

Offline Nailer

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Re: Government to confiscate 401k and IRA
« Reply #3 on: October 11, 2010, 07:52:44 am »


House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created "guaranteed retirement accounts" for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return. Rep. Jim McDermott, a Democrat from Washington and chairman of the House Ways and Means Committee's Subcommittee on Income Security and Family Support, said that since "the savings rate isn't going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that's not generating what we now say it should."

http://money.usnews.com/money/blogs/capital-commerce/2008/10/23/would-obama-dems-kill-401k-plans.html
I am a realist that is slightly conservative yet I have some republican demeanor that can turn democrat when I feel the urge to flip independant.
 
The truth shall set you free, if not a 45ACP round will do the trick.. HEHE

Offline Nailer

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Re: Government to confiscate 401k and IRA
« Reply #4 on: October 11, 2010, 07:55:20 am »


There may be a problem with the loan thing.

Read your loan docs.

The 401(k) in many cases is used as COLLATERAL to secure a loan issued by a financial institution.

If the Gov't STEALS your 401(k), the COLLATERAL may cease to exist, causing the bank to DEMAND PAYMENT IN FULL!

Example:

John, a 41 year old married man, owns an IRA with $150K in money market funds. Over the years, he has always had the right to withdraw any part or all of the funds, subject to a 10% tax penalty and income taxes on the withdrawn amount.

Last year John got a loan for 50% of his IRA and spent the $75K on whatever. The IRA was used to collateralize the loan using legal language that permit John's lender to withdraw money from his IRA in the event he defaulted on his loan.

/GAME CHANGER/

NOW, the Gov't nationalizes his IRA under a new SOCIALISM scheme where his $150K money market funds are converted to $150K in government credits payable according to rate tables starting at age 67.

Under the new IRA rules, both John and his lender are prohibited from making withdraws from John's IRA. The legal language in John's IRA, permits his lender to call in the loan due to lack of collateral.

John received a bill for the $75,000 that is now due and payable to the bank.

John doesn't have the money, and defaults on the loan. The bank files a lawsuit, obtains a judgement, then slaps a 25% wage garnishment on his paycheck!

So poor John just lost 30% more of his gross pay. 5% to the new payroll tax, and 25% to the wage garnishment.

WELCOME TO THE 2ND GREAT DEPRESSION!
I am a realist that is slightly conservative yet I have some republican demeanor that can turn democrat when I feel the urge to flip independant.
 
The truth shall set you free, if not a 45ACP round will do the trick.. HEHE

Offline Nailer

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Re: Government to confiscate 401k and IRA
« Reply #5 on: October 11, 2010, 07:57:03 am »

Full Committee Hearing - The Wobbly Stool: Retirement (In)security in America

Video link
http://help.senate.gov/hearings/hearing/?id=5da43ad4-5056-9502-5dd9-ebb590d7e9ad
I am a realist that is slightly conservative yet I have some republican demeanor that can turn democrat when I feel the urge to flip independant.
 
The truth shall set you free, if not a 45ACP round will do the trick.. HEHE

Offline Jon W

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Re: Government to confiscate 401k and IRA
« Reply #6 on: October 11, 2010, 08:04:15 am »
I don't see it...

IF they did this, there would be a full blown revolt within a day of it's implementation. If not before.

Offline Nailer

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Re: Government to confiscate 401k and IRA
« Reply #7 on: October 11, 2010, 08:06:44 am »
I don't see it...

IF they did this, there would be a full blown revolt within a day of it's implementation. If not before.

sheeple obey the Government as it knows what is best for them.

The government will make up some BS reason for robbing the people and the sheeple will comply .
I am a realist that is slightly conservative yet I have some republican demeanor that can turn democrat when I feel the urge to flip independant.
 
The truth shall set you free, if not a 45ACP round will do the trick.. HEHE