The approximate $4 trillion invested in private retirement plans is now in the crosshairs of the administration. This confiscation has been discussed over the past four years but the “fiscal cliff” may be the excuse to accomplish the final phase of redistribution. What can you do? The only way to win is not to play the game: get out of the system.
Your only other alternative is to embrace evil.
War On Wealth: As Washington debates what to do about the fiscal cliff that it foolishly created, many potential sources of new revenue will be thrown on the table. One of them is likely to be 401(k) plans.
Retirement is an American’s reasonable expectation. We put money into investment plans so that our work today funds our hard-earned leisure of tomorrow.
But many in Washington see our investment accounts not as the expressions of well-planned, disciplined decisions but as untapped reservoirs of wealth they can drain to fix the problems that they caused.
The tax protection that 401(k)s have now can be wiped out by grasping politicians who refuse to do what’s right, which is to severely cut spending.
The war on retirement, particularly 401(k)s, is quiet now. But that’s because it’s a cold war.
And like the postwar tensions between the East and West, it could erupt at any time into a hot war.
One group of retirement plan professionals is warning that the hostilities might be closer than many of us think. The American Society of Pension Professionals and Actuaries launched on Monday, according to Reuters, “a media campaign intended to educate U.S. employers and workers that the federal government might consider changing the tax benefits of retirement savings accounts.”