Is the Obama administration seriously reviewing the takeover of your 401(K)? All indications are YES!
From Gateway Pundit: Obama Administration Makes Plans to Gobble up 401(K)s
Apparently, Obama believes that at some point “we make enough money” (his $5.5 million earnings notwithstanding) so why would it surprise us to think he believes we have “saved enough money”.
There are several interesting developments that certainly point in the direction of a 401(K) takeover. From Human Events:
In February, the White House released its “Annual Report on the Middle Class” containing new regulations favored by Big Labor including a bailout of critically underfunded union pension plans through “retirement security” options.
The radical solution most favored by Big Labor is the seizure of private 401(k) plans for government disbursement — which lets them off the hook for their collapsing retirement scheme. And, of course, the Obama administration is eager to accommodate their buddies.
Vice President Joe Biden floated the idea, called “Guaranteed Retirement Accounts” (GRAs), in the February “Middle Class” report.
In conjunction with the report’s release, the Obama administration jointly issued through the Departments of Labor and Treasury a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options” in the form of a notice to the public of proposed issuance of rules and regulations. (pdf)
That ROI was released for comment in February, 2010.
Clearly this thinking of confiscating your 401(K) in exchange for a government program is fresh on the minds of this administration. It is nothing more than a money and power grab that ultimately steals your hard-earned savings for the PROMISE of a return later. But all you have to do is think “Social Security” to understand how well that PROMISE will be kept.
This is outright communist behavior and takeover of the funds of private citizens for the increased power and gain of bloated government control.
It is nothing less than that.
As I wrote about earlier, from Investor.com:
In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.
And from Powerline blog, I wrote earlier:
They will tell you that you are “investing” your money in U.S. Treasury bonds. But they will use your money immediately to pay for their unprecedented trillion-dollar budget deficits, leaving nothing to back up their political promises, just as they have raided the Social Security trust funds.
This “conversion” may start out as an optional choice, though you are already free to buy Treasury bonds whenever you want. But as Karl Denninger of the Market Ticker Web site reports: “‘Choices’ have a funny way of turning into mandates…
In other words, if you have been responsible and maxed out (or not) your 401K contributions complete with company matching, the government is moving to “control” it all for you. Essentially this policy removes individual savings for retirement and places your retirement income largely into the hands of the government to dole out as they see fit…..and that is assuming the money will even be there when you retire (ie. think Social Security).
This plan has caught the attention of other politicians which tells me it is no small worry and is likely well on the path of moving forward. Republican Minority Leader John Boehner and a host of others have sent a letter to the Department of Labor’s Hilda Solis and Department of Treasury’s Timothy ”Tax Cheat” Geithner urging them not to make such a move:
As members of the Republican Savings Solutions Group, we write today to express our strong opposition to any proposal to eliminate or federalize private-sector defined contribution pension plans, such as 401(k)s, or impose burdensome new requirements upon the businesses, large and small, who choose to offer these plans to their employees……
…….These advocates would, essentially, dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen. This despite data showing that 90 percent of households have a favorable opinion of the existing 401(k)/IRA system.
In light of these facts, we write today to express our opposition in the strongest terms to any effort to “nationalize” the private 401(k) system, or any proposal that would dismantle or disfavor the private 401(k) system….
Then make sure all of your friends and family are aware of this catastrophe that is brewing in the minds and plans of this administration.
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Filed under: 401K, Barack HUSSEIN Obama, Collectivism, Communism, Economy, Liberalism, Nutroots, Obama corruption, Politics, Progressives Ain't, Socialism, Taxes Tagged: | 401K, banana republic, Barack Obama, big government, government control, government takeover, national debt, of 401K, Pelosi, pitchforks, Socialism, T-Bills, Treasury bills