What Happens when the US Confiscates Pension Funds to Pay Off Debt.?
- Thread starter Justin Bilyj
- Start date
- 349
It's not like our govt would tak over the roughly 19 trillion in 401ks to pay off our 16 trillion and counting debt Lol.
- 10,318
There is no need for the US to do it that blatantly. The US gov has taxes to do it underhandedly.
Just look at the RMD requirement. Life expectancy keeps going up, but do you think they plan to change the RMD age anytime soon??!!
Eventually retirement age will basically be equal to RMD age.
Combine that with higher income taxes on people who actually have incomes, and between Fed & State taxes they will have their 50%... or close to it.
This year we have 8k boomers per day turning 65. Many of them are even still contributing to their 401k/IRA. The majority are not spending them down quickly.
In 5 years we will have 8k seniors per day turning 70 1/2.
So in 5 years 8k people per day will be forced to start distributions, or face a 50% tax on the amount they "should have" withdrawn.
So the fed will start to receive around 30%-40% of most peoples accounts if they plan correctly. If not they will get 50%.
And since they dont take it all at once, they are taking it from a larger account value vs. a current smaller value.
Just look at the RMD requirement. Life expectancy keeps going up, but do you think they plan to change the RMD age anytime soon??!!
Eventually retirement age will basically be equal to RMD age.
Combine that with higher income taxes on people who actually have incomes, and between Fed & State taxes they will have their 50%... or close to it.
This year we have 8k boomers per day turning 65. Many of them are even still contributing to their 401k/IRA. The majority are not spending them down quickly.
In 5 years we will have 8k seniors per day turning 70 1/2.
So in 5 years 8k people per day will be forced to start distributions, or face a 50% tax on the amount they "should have" withdrawn.
So the fed will start to receive around 30%-40% of most peoples accounts if they plan correctly. If not they will get 50%.
And since they dont take it all at once, they are taking it from a larger account value vs. a current smaller value.
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