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Watch out some economists are floating the idea of confiscating (Original Post) doc03 May 9 OP
Where do you see anything in the article about confiscation? Scrivener7 May 9 #1
They use the word eliminated, sounds like the same thing doc03 May 9 #3
Eliminate tax breaks is different than taking your money. 3Hotdogs May 9 #7
It sounded to me TheFarseer May 9 #13
If they eliminate the tax advantage it would be the same as eliminating doc03 May 9 #14
But that is still not the same as "confiscating." 3Hotdogs May 9 #18
Not the same thing at all. They're not going to confiscate your accounts. Scrivener7 May 9 #16
This has been touted as an option for some time. I doubt that it'll happen, but what I do think will happen is that SWBTATTReg May 9 #2
Nothing is getting confiscated. Ocelot II May 9 #4
Second paragraph. They propose (abolishing) tax sheltered plans like 401K doc03 May 9 #6
Abolishing isn't confiscating. Ocelot II May 9 #9
It doesn't say abolishing the (tax benefit) it says abolishing (tax sheltered plans) like doc03 May 9 #11
You're really fighting hard to see a disaster that simply isn't there. Scrivener7 May 9 #17
Hollow out people and give tax break to corporations bucolic_frolic May 9 #5
There were many of my fellow workers that would not put money in a 401k doc03 May 9 #8
SS is actually paid into by those that collect it later... Think. Again. May 9 #10
I have been on SS for 14 years, I skimped and doc03 May 9 #12
Could your headline be more misleading and alarmist? 58Sunliner May 9 #15
As many have pointed out... no confiscation. Furthermore... Happy Hoosier Wednesday #19

doc03

(35,485 posts)
3. They use the word eliminated, sounds like the same thing
Thu May 9, 2024, 08:09 AM
May 9

as confiscate to me. I pay into my IRA/401K and they take it to fund SS, what else is it. I put
a percentage of my income in an IRA and later in a 401K, I can now withdraw more for my IRA every
month for the rest of my life than I get from SS.

TheFarseer

(9,329 posts)
13. It sounded to me
Thu May 9, 2024, 09:26 AM
May 9

Like they were advocating eliminating preferential tax treatment for those retirement plans. I personally think that would be an Ok idea.

On edit - So really you would just have a brokerage account then and you would still be getting a special low tax rate on cap gains and dividends. Doesn’t sound so bad.

doc03

(35,485 posts)
14. If they eliminate the tax advantage it would be the same as eliminating
Thu May 9, 2024, 09:35 AM
May 9

the program. The tax is not eliminated by putting money in a 401k or IRA it is "deferred" until you withdraw.
The whole idea of the 401k and IRA was to encourage people to save for their retirement.

3Hotdogs

(12,502 posts)
18. But that is still not the same as "confiscating."
Thu May 9, 2024, 05:03 PM
May 9

The money you put in would still be there. I don't support the elimination of the tax benefits.

Scrivener7

(51,102 posts)
16. Not the same thing at all. They're not going to confiscate your accounts.
Thu May 9, 2024, 12:00 PM
May 9

And the article isn't saying they are.

SWBTATTReg

(22,292 posts)
2. This has been touted as an option for some time. I doubt that it'll happen, but what I do think will happen is that
Thu May 9, 2024, 08:09 AM
May 9

the ability to fund your own 401Ks and IRAs will diminish or reduce in the amounts you can put into these accounts. This option has been mentioned too in the past.

Ocelot II

(116,098 posts)
4. Nothing is getting confiscated.
Thu May 9, 2024, 08:12 AM
May 9

The discussion is about whether the tax advantages of these plans should be repealed.

doc03

(35,485 posts)
6. Second paragraph. They propose (abolishing) tax sheltered plans like 401K
Thu May 9, 2024, 08:28 AM
May 9

Last edited Thu May 9, 2024, 09:14 AM - Edit history (1)

and IRAs to bolster SS. If you eliminate the tax break for a 401k and an IRA you are in
effect eliminating the 401k and IRA. What would be the point of having a 401k or IRA
without the tax break. It is not a tax break, it is a tax deferment, you pay when you withdraw.
It would be no different than putting your money in a savings account or the Wall Street casino.

Ocelot II

(116,098 posts)
9. Abolishing isn't confiscating.
Thu May 9, 2024, 08:43 AM
May 9

Your existing plan wouldn't be taken from you; new plans with the tax advantages of existing plans would no longer be offered. That's not confiscation.

doc03

(35,485 posts)
11. It doesn't say abolishing the (tax benefit) it says abolishing (tax sheltered plans) like
Thu May 9, 2024, 08:52 AM
May 9

401k and IRAs. Either way they are reneging on a promise they made to get you to invest for your retirement.
We were told you can invest in a 401k and your tax will be deferred until you withdraw. It was a plan to get
workers to put their money in Wall Street since they couldn't privatize SS.

Scrivener7

(51,102 posts)
17. You're really fighting hard to see a disaster that simply isn't there.
Thu May 9, 2024, 12:01 PM
May 9

You aren't going to lose your accounts.

bucolic_frolic

(43,614 posts)
5. Hollow out people and give tax break to corporations
Thu May 9, 2024, 08:18 AM
May 9

One of them an American Enterprise Institute guy. Conservative think tank. What do you expect?

It's a constantly warring sleight-of-hand. They tax traditional IRAs, but not Roth, except a few states for estate tax purposes, and strict rules on inheriting a Roth IRA. Some SS is taxed for higher earners post-retirement, there are some exclusions. The uncertainty and changing landscape causes people to not pay close attention, or care very much.

SS was designed for old age support - rent, heat, food, healthcare. The components of retirement costs are complex. Wealthy people have trust funds, and due to estate tax law, have loopholes to the point they really can take it with them.

It's just like the internet. We're so much safer doing things online now that every hack can locate, target, swat, swindle, loot, and compromise our private records. Major financial companies advise - check your accounts every day.

doc03

(35,485 posts)
8. There were many of my fellow workers that would not put money in a 401k
Thu May 9, 2024, 08:39 AM
May 9

for this exact reason. They would say you can't trust the government they will find a way to take that money.
This was a contract with the public to encourage people to save for their retirement. Yes, you get a tax break
when you put your money in but you also pay tax on the capital gains as regular income rather than the lower
Capitol Gains tax when you take it out. In addition, your income from an IRA subject your SS to tax, I paid tax
on 85% of my SS last year.

Think. Again.

(9,090 posts)
10. SS is actually paid into by those that collect it later...
Thu May 9, 2024, 08:44 AM
May 9

...so your fear of paying for people who didn't save is...well, weird.

doc03

(35,485 posts)
12. I have been on SS for 14 years, I skimped and
Thu May 9, 2024, 09:08 AM
May 9

saved to put money in my 401K so I could retire with some dignity. I pay tax on 85% of my
SS while those I worked with who didn't plan for their retirement keep all their SS. Now they propose taking the
tax break for a 401k from future retirees. If they take the tax break away they are in effect eliminating the
401k and the IRA, there would be no reason to have them it would be the same as just putting your money
in a bank account or just buying stocks.

Happy Hoosier

(7,510 posts)
19. As many have pointed out... no confiscation. Furthermore...
Wed May 15, 2024, 10:41 AM
Wednesday

I think there is zero percent chance they eliminate these programs going forward UNLESS they are replaced with a different program, or social security is actively expanded.

There is already a retirement crisis in this country, there is no chance that they make it worse with a ham-handed measure like this.

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Latest Discussions»Culture Forums»Personal Finance and Investing»Watch out some economists...