a Bill that would limit use of your 401k

401k Limiting Bill

Workers will be limited in tapping their 401(k) retirement plans for loans under legislation two senators introduced today that’s designed to counter the erosion of retirement assets.

“Because of the difficult economic times, more and more Americans are treating their retirement accounts as rainy day funds,”Senator Herb Kohl, a Wisconsin Democrat, said in a statement today. “A 401(k) savings account should not be used as a piggy bank.”

I am of two minds on this Bill. as a business man, my job is to help people get loans or lines of credit, to start their own business, or franchise. So that part of me thinks, "Hey, if the gov. makes people stop using their 401ks i might get more business, because people will need funding"

Then my American side kicks in and says "F@ the Gov. they shouldn't be telling us how to spend our own money!"

Luckily my American side beats out my businessman side everytime. The gov wont be happy until they can control every aspect of our lives.

reply to post by Mythos13


Who are they to tell someone what they can spend THEIR money on?? This country is a few steps away from flushing ALL the way down the toilet!!!

I'd almost guarantee this legislation has more to do with Bankers being unhappy when people draw down the amount that the bank is using thus taking away the amounts of interest the bank gets off that money.

reply to post by Chrisfishenstein


I totally agree. I am of the mind that we need less gov. not more. You already get penalized 20% if you take money out of your 401k early. Why add more restrictions?

Originally posted by Mythos13
reply to post by Chrisfishenstein

 

I totally agree. I am of the mind that we need less gov. not more. You already get penalized 20% if you take money out of your 401k early. Why add more restrictions?

Yeah that is a crooked scam also!! Not to mention the taxes you have to pay on the amount after you lose half in fees!! But on the government controlling what you spend it on side, they really think they can just do what they want??!!! It is honestly getting sickening

First of all before it would ever be passed the law would be watered down because as it stands the bill would cause too much anger. So just relax. Second we must understand that if people do tap into their 401(k)'s then they obviously are in need of more funds to stay afloat but what happens if they have not cut back their spending and are relying unnecessarily on too much of their 401(k)'s? Then when they might truly need it there will not be enough left.

I agree it should be limited for the time being but with other options. For example if you absolutely need it as your last lifeline you can make an immediate appeal to a certain local agency to give you a waiver on the limitations. There are many things which can be tried with this bill and should be. All of the language within should not be ruled out because of political ideology we must think pragmatically.

reply to post by Mythos13


Dilema for sure. my problem is that if they pull it out now, who has to take care of them later for their choice?

Once upon a time, not in my lifetime(34) you had to figure it out on your own because the government wasnt going to take care of you.

Now people put up a stink that they have nothing and see me in my gently used car and are mad at me for bucking down when times are tuff?

I say let them pull their retirement funds, but when they come crying that SS is not enough for them to live on and their medicals bill are too high, pull out that date they decided to make things "easier" by destroying their future.

Not surprised because if there are restrictions placed on usage and withdrawal (not to mention already ridiculous tax hits) then there will be more in holdings when the time is ripe to seize control of the accounts...
It's not "our" money,we just get to pay for the honor of earning it and it pretty much stinks...

reply to post by Butterbone


Its always about the bankers. We bail them out, and they want more. the sad thing is, they have the money to make things happen their way. Our congress has surpassed the level of corruption that the Roman senate extablished. Before long, at this rate, we will end up the same as the Roman Empire.

reply to post by Mythos13


Step one of privatizing Social Security. SS is the walking dead. Thanks to the glutons that have traded the nations future for their personal comfort (aka the generations that have run the country for the last 30 years), your future and mine will be spent keeping them comfortable whilest we see our living standards drop dramatically.

We will never see our donations repaid... Thus we will have only our personal accounts to support us. They must now force the protection of those accounts in an effort to avoid a nation of starving, welfare elders when WE retire.

.....but wall street can do whatever they please with that money.......

People wouldn't need to rely on 401k plans if the following happened:

- Wars were ceased and funding for them is pulled
- Unnecessary and corrupt departments were disestablished, thus saving tax money
- Government got their noses out of everyones business and did their job appointed via Constitution
- Income tax is rid of

Don't ask me where this idea of taking earned money from people as a mandatory process. I tell you what, there would be more true, smart patriots in America if the flipp'n government would allow the people to know what's going on and voluntarily donate money. People need these 401k plans because they can't save their own money because with the way everything is today, there isn't much to save. If you worked 10-20-30-40 or so on years collecting that money patiently, little by little, there is no way you should ever be told what to do with it and/or made to do something with it.

You earned it, they took it, now you've got it back. Don't let those sons of b!t(hes tell you what you can or cannot do. They have already done enough with income tax, if they start to screw with you more, well then you know to urgently use your first and second amendment rights..

Son of Oda

reply to post by Mythos13


401-k are the employee's( at least the non vested/matching parts) own money. It's like Congress telling you "Hey, by the way, you can touch or spend 15% of your paycheck". I just love how a Government that is so far in debt it makes your head spin, wants to advise us on how to manage our own financial affairs. I mean its not like we have raided the Social Security system to cover our nation's "day to day bills". Remember to vote out any idiots who vote for this measure. Remember, politicians don't have 401-k plans, they have government taxpayer funded pensions and slush funds.

Hypocrites.

Of course they don't want you pulling money from your 401K. There has been rumors of the gov wanting heavy taxation on it, the less in there the less they can tax. There is also the possibility of legislation for them just to take it, use it as an emergency loan for the "good of the people". We already see Geithner pulling money from government pensions, this would just be the next step.

reply to post by pavil


I totally agree with you. The politicians do not give a damn about the people that elected them to office, they care about the lobbiest that pad their wallets. There is no accountablility. I wish Common sense was a requirment to serve in the congress. If not that, then at least Integrity.

Wish I hadn't predicted this long ago, but I did. Just another step in robbing us of every penny. Step 1 steal...er...reform pensions. Step 2 limit 401Ks and steal them. It will be interesting to see if this bill passes.

And yes...who the hell are they to make these kinds of proclamations over our money?

Originally posted by Mythos13
reply to post by Butterbone

 

Its always about the bankers. We bail them out, and they want more. the sad thing is, they have the money to make things happen their way. Our congress has surpassed the level of corruption that the Roman senate extablished. Before long, at this rate, we will end up the same as the Roman Empire.

We can only hope man.

Originally posted by Chrisfishenstein
reply to post by Mythos13

 

Who are they to tell someone what they can spend THEIR money on?? This country is a few steps away from flushing ALL the way down the toilet!!!

You just wake up ????? your already on the flush dude ..... you just haven't noticed since your still goin aroundddddddddddd......

reply to post by Mythos13


I honestly don't know what is worse.
The government telling us what to do with our own money?
or
The lack of outrage in the populace.

*BAAAAAAA, (munching grass) whatever. . . . *

reply to post by Mythos13


They also want you to leave that money in place until one of their friends comes up with a good scheme to steal it from you.

My two cents.

IF the people at the top were not lying through their fangs about wanting "less regulation" this would not even be an issue. Of course people should be allowed to use that money for whatever they want, and since the rich bastiges have all but destroyed our economy, the rules for penalty free withdrawal should be loosened so that people can save their homes if need be, and salvage whatever they can of the equity in it.

The game is rigged. Simple truth.