401k's

[Hyper]

Fund choices of my past 401k were always employee committee picked so just about always UNDER performed. We maxed 401k out only because of taxes at the time. I don't think I would have contributed if it hadn't been for the tax benefits. Our 401k are IRA now. Was never comfortable relying only 401k as so many of my work companions did. If not for 401k those work companions wouldn't have much $ saved at all for retirements!!! I find this interesting because a while back DD completed college and asked our thoughts on how to proceed with 401k at new job. I realize they are fear mongering and being horribly political with the article anyway but still interesting. The GOP is looking for ways to pay for tax cuts. Your 401(k) may bear the cost.

 

[Spock]

Read the 2nd half of the same paragraph: "This policy idea is widely disliked by budget hawks, who consider it a gimmick; the financial services industry that handles retirement savings; and nonprofits that try to encourage Americans to save."

Of bigger concern was the prior administration considering taking over all retirement accounts and either forcing them to invest in "safe treasuries", "R-bonds", or a government annuity.

 

[pb4uski]

Any fool can have an idea... no way this is going anywhere.

 

[candrew]

Of bigger concern was the prior administration considering taking over all retirement accounts and either forcing them to invest in "safe treasuries", "R-bonds", or a government annuity.

I was not aware that the previous administration was considering "taking over all retirement accounts and forcing [anyone] to invest".

I am aware of a proposal that was made to encourage workers whose employers did not have 401K style plans to save for retirement. Part of that initiative, which ultimately died on the vine, would auto-enroll those employees into a plan unless they chose to opt-out.

For retirement, are R-Bonds right for you? - MarketWatch

This would hardly be a take over of *all* retirement accounts as you have indicated. Do you have information from a reputable source indicating otherwise? If so, I'd sure like to learn the details about such a proposed take over.

 

[JoeWras]

This is venturing to politics. Be careful. Here is one summary of the rumors of said "take over." https://cashmoneylife.com/can-the-us-government-seize-your-401k-or-ira/

As for the original article, the trade off was kind of a proposal that "all 401ks are Roths" and that everyone is eligible for them. Like many of the other proposals, it is unlikely to go far.

 

[MichaelB]

Just like with health care, these ideas are speculation, proposed by individuals or groups with agendas, and discussion always gets political, and partisan. For that reason, tax proposals are fair topics for discussion once they are out of committee and under consideration by either of the two legislative bodies.