- 15,041
The only thing is, taxing middle class retirement accounts generally is a fast way to not be re-elected.
If anything happens, think AMT. They will set it so only the "rich" pay it. They may or may not have it inflation indexed.
If Government Confiscates IRA's and 401k's, Are Annuities Safe?
- Thread starter melvinmills
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- 401k
The only thing is, taxing middle class retirement accounts generally is a fast way to not be re-elected.
If anything happens, think AMT. They will set it so only the "rich" pay it. They may or may not have it inflation indexed.
- 8,707
As you know its hasn't been taxed yet those fund eventually are taxed what is scary is politicians still looking at these accounts as another way to continue with spending.
If they are going to touch sacred cows, nothing is safe.
It would be unethical to claim annuities would be safer, since there is no, I mean absolutely no basis for that statement.
Wishful thinking maybe. But since you are dealing with something that isn't even in a real plan, its hard to figure out what that plan might be someday, if and when, and why......
Dan
It would be unethical to claim annuities would be safer, since there is no, I mean absolutely no basis for that statement.
Wishful thinking maybe. But since you are dealing with something that isn't even in a real plan, its hard to figure out what that plan might be someday, if and when, and why......
Dan
- 10,711
Well if the Fed confiscated Qualified Accounts then Annuities inside of Qualified Accounts would be screwed. But one would assume that those outside of a qualified account would be fine.... just like a CD/MF/etc. would be.
I guess most of you guys have not heard of the R-Bond proposal. It never made it to congress, but the fringes of the left have most certainly been pushing taking over qualified accounts. And the scary things is that some of these fringes are the ones who helped to craft the beginnings of ObamaCare...
But personally I do not think it will happen. And it doesnt have to. They have 2 other ways to take away our qualified funds.
1. Income Taxes
2. RMDs
Taxes are self explanatory.
But the RMD age (70 1/2) has stayed at that age for a while now. But retirement age keeps getting later and later in life (so does life expectancy).
Now, the people with the largest chunk of Qualified Funds in the US are very quickly approaching RMD age. RMDs can be as low as 4% per year and can get as high as 9% per year.
And since the government controls the RMD calculations, they can always make gradual tweaks to incrementally take more and more. Major media outlets are not sophisticated/intelligent enough to understand or effectively report the impact, so it will go unkown to the general public.
I guess most of you guys have not heard of the R-Bond proposal. It never made it to congress, but the fringes of the left have most certainly been pushing taking over qualified accounts. And the scary things is that some of these fringes are the ones who helped to craft the beginnings of ObamaCare...
But personally I do not think it will happen. And it doesnt have to. They have 2 other ways to take away our qualified funds.
1. Income Taxes
2. RMDs
Taxes are self explanatory.
But the RMD age (70 1/2) has stayed at that age for a while now. But retirement age keeps getting later and later in life (so does life expectancy).
Now, the people with the largest chunk of Qualified Funds in the US are very quickly approaching RMD age. RMDs can be as low as 4% per year and can get as high as 9% per year.
And since the government controls the RMD calculations, they can always make gradual tweaks to incrementally take more and more. Major media outlets are not sophisticated/intelligent enough to understand or effectively report the impact, so it will go unkown to the general public.
- 249
I'm told that a law called ERISA had devastating effects on many financial advisors. It's way before my time in this business but I've heard some of the older people mention it. Maybe that is what the thread starter is thinking about?
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melvinmills
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Thank you for the responses.
I would never do anything with even a hint of unethical flavor, Dan.
I do appreciate your candid response.
scagnt83 brought up a good point: IF the gov't decided to go after
qualified monies, annuities in NON qualified accounts would not get caught
in the net.
nylife11023, I will look into ERISA to find out what people were trying to get at when they said it was making life difficult for advisors.
I will reiterate: I do not believe the gov't will try to take over the qualified money and create a national retirement plan.
BUT IF THAT IS THE PERCEPTION SOME PEOPLE HAVE, I would still like
to be able to address it and offer some possible solutions, keeping in mind that Dan is accurate that it is hard to come up with a hard and fast solution when the problem is currently an undefined fairy tale right now.
I would never do anything with even a hint of unethical flavor, Dan.
I do appreciate your candid response.
scagnt83 brought up a good point: IF the gov't decided to go after
qualified monies, annuities in NON qualified accounts would not get caught
in the net.
nylife11023, I will look into ERISA to find out what people were trying to get at when they said it was making life difficult for advisors.
I will reiterate: I do not believe the gov't will try to take over the qualified money and create a national retirement plan.
BUT IF THAT IS THE PERCEPTION SOME PEOPLE HAVE, I would still like
to be able to address it and offer some possible solutions, keeping in mind that Dan is accurate that it is hard to come up with a hard and fast solution when the problem is currently an undefined fairy tale right now.
- 10,711
ERISA was a sweeping tax law(s) that regulates Qualified Retirement Plans. It effects any IRA you place.
While it made life more complicated for advisors, it was hardly devastating.
All it did was just complicated an already complicated subject. Which just increases the importance of using an advisor for a client.
- 15,041
Not so fast. Ask Somarco, from what I understand, ERISA destroyed the pension market.
- 10,711
To an extent I think that is right... it at least radically reformed it. I wouldnt say that it devastated advisors though.... of course I wasnt in business back then so someone like Bob could shed more light.
- 15,041
Well, he sure isn't selling pension plans these days... Hopefully his nose will start itching soon and he will wander over here.
