Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
401k pre-tax contributions no more?!?
Old 04-23-2008, 12:45 PM   #1
Dryer sheet aficionado
 
Join Date: Aug 2007
Posts: 47
401k pre-tax contributions no more?!?

Horrendous idea

Economist Teresa Ghilarducci plans to save early retirement - Apr. 23, 2008
__________________

__________________
hova22 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-23-2008, 01:31 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
Typical Money magazine quality stuff.

I like this quote:
"the government will contribute $600 a year". Isn't that nice. Wonder who will fund this mandate? Oh wait, we get to pay more taxes to give back to ourselves? Why can't we just cut out the middle man and save more on our own. If your goal is to redistribute wealth robinhood-style, just raise taxes on the rich and bump up the earned income credit income limits and payout amounts.

Maybe that $50 billion in tax breaks for 401k contributors, once it is eliminated, can be used to pay the $600/yr into public "guaranteed retirement accounts".

I'm having a hard time seeing how this proposal is a lot different than Social Security or revised SS as proposed by the Bush administration with private investment accounts that are earmarked in your name specifically.

Why not just bump the SS payroll tax up another 2.5%, charge employers another 2.5%, and then increase SS payouts for all retirees? Why create a duplicate system to do essentially the same thing as SS does right now?
__________________

__________________
FUEGO is offline   Reply With Quote
Old 04-23-2008, 01:45 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
Teresa Ghilarducci // University of Notre Dame

There is the proponent's website at Notre Dame.

There's a little blurb on that site about specifics of funding/investments in these new "guaranteed retirement accounts". The government would pay a guaranteed rate of return of 3% above inflation on these accounts. Like 3% real yield tips or I-bonds (seen any of those issued lately?).
__________________
FUEGO is offline   Reply With Quote
Old 04-23-2008, 10:54 PM   #4
Recycles dryer sheets
 
Join Date: Apr 2008
Posts: 54
The idea of having the government withhold more mandatory money from my paycheck with the promise of giving it back later doesn't sit well with me.

They don't seem to be doing so well as it is, why should we give them more.

The SS statment I got this week is all the evidence I need "Without changes, by 2041 the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 75 cents for each dollar of schedule benefits"

What do you know, 2041 happens to be the very year that I become fully eligible for SS! How about taxing us less and letting us save more on our own. Now there is a novel thought.
__________________
Johnphx is offline   Reply With Quote
Old 04-24-2008, 12:30 PM   #5
Dryer sheet wannabe
 
Join Date: Sep 2007
Posts: 16
Quote:
Originally Posted by FUEGO View Post
Typical Money magazine quality stuff.

I like this quote:
"the government will contribute $600 a year". Isn't that nice. Wonder who will fund this mandate? Oh wait, we get to pay more taxes to give back to ourselves? Why can't we just cut out the middle man and save more on our own. If your goal is to redistribute wealth robinhood-style, just raise taxes on the rich and bump up the earned income credit income limits and payout amounts.

Maybe that $50 billion in tax breaks for 401k contributors, once it is eliminated, can be used to pay the $600/yr into public "guaranteed retirement accounts".

I'm having a hard time seeing how this proposal is a lot different than Social Security or revised SS as proposed by the Bush administration with private investment accounts that are earmarked in your name specifically.

Why not just bump the SS payroll tax up another 2.5%, charge employers another 2.5%, and then increase SS payouts for all retirees? Why create a duplicate system to do essentially the same thing as SS does right now?
I agree to charge employers but only above a certain number of employees ( i am self employed so why should i pay more if there are no employees )). Also i think they need to get rid of SSN and basically say .. save for urself and dont make others save for u. This concept of government help doesnt appeal to me.
__________________
honydonk is offline   Reply With Quote
Reply

Tags
401k


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
After-tax contributions to 401k? igsoy FIRE and Money 26 01-09-2008 04:09 PM
401K catch-up contributions? plattj1 FIRE and Money 8 10-13-2006 05:21 PM
after-tax contributions to 401K - pros/cons? simple girl FIRE and Money 14 10-12-2006 02:27 PM
401k contributions help? robls Other topics 2 09-30-2003 09:49 AM
Non-deductible 401k contributions friendlygirl FIRE and Money 3 07-01-2002 11:01 AM

 

 
All times are GMT -6. The time now is 11:17 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.