Will Your 401k Be Raided is the question that people are asking as Congress looks at every possibility to reduce debts and make money?
The answer to the Will Your 401k Be Raided question, is Yes. One way Your 401k Be Raided is by reducing 401k Contributions. As 401k administrator discussed in our Congress Might Be Ready To Slash Your 401k article, Congress might consider capping 401k contributions at $20,000 or 20 percent of income, whichever is lower.
Thus if you make $50,000 and your company has a 4% match, your 401k administrator would limit your 401k contribution to $8,000. So Will Your 401k Be Raided? Yes. Congress might ask you to give up a 51% reduction in 401k contributions. In effect, that part of your 401k has been confiscated by government.
Well another way that congress might raid your 401k is by mandating that a percentage of 401k and IRA funds be invested in Treasury securities. In an article that first appeared in AmericanThinker.com, posed the question, would the Government really raid 401ks?
The answer was, “Those who believe our government is too honorable to raid private retirement accounts had better wake up! The seriously dangerous and wounded animal we know as government is fighting for its survival. It will do anything short of dying, reducing spending, or revealing itself as the Ponzi scheme it truly is.” see original story
Whether the Government limits your 401k contribution or mandates that you invest in Treasuries, AmericanThinker.com answered the question “Why Will Your 401k Be Raided” by quoting famed bank robber Willie Sutton who said, “That is where the money is.”
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