Congress considering reducing benefits of 401(k)... WSJ Article

[Craigy]

https://blogs.wsj.com/moneybeat/2017/04/21/grab-your-pitchfork-america-your-401k-may-need-defending-from-congress/

http://archive.is/rqNyW

 

 

[Zaphod]

Is there anything more substantive than this particular lawyers math to suggest this is the case? Any bills being floated to that purpose? Sounds like one persons conjecture without some actual legislators take or a bill in play.

[Hatton]

I read the article this morning.  This kind of talk seems to surface every so often.  I know it was a proposal by Obama to limit tax deferred accounts to around 2 million but it went no where.

[Craigy]

Yeah I searched myself and found not a whole lot.  There were a couple of news articles about the idea being floated around congress among the GOP to switch to an all-roth system in order to raise revenues by no longer allowing deferrals, but the articles were short on detail.  The fact that it's WSJ makes me feel like it's legitimate, but it could just be an excuse for the writer to complain about congress's sweet pensions.

If they got rid of 401ks but opened the door to larger roth contributions that would be a decent cushion to the blow.

Still seems like this would be largely untouchable though.

[ENT Doc]

Possible preemptive strike based on what a few staffers might be saying.  I think Zweig is a respected source.  Raiding 401ks would be silliness.  Meanwhile, we have large swaths of the electorate who pay no personal income tax.  Seems fair.

[G]

ENT Doc wrote:

Possible preemptive strike based on what a few staffers might be saying.  I think Zweig is a respected source.  Raiding 401ks would be silliness.  Meanwhile, we have large swaths of the electorate who pay no personal income tax.  Seems fair.

Click to expand...

Is it appropriate to add my usual refrain? -- Who is John Galt?

[litovskyassetmanagement]

Craigy wrote:

https://blogs.wsj.com/moneybeat/2017/04/21/grab-your-pitchfork-america-your-401k-may-need-defending-from-congress/

http://archive.is/rqNyW

 

 

Click to expand...

I've seen articles popping up about some unnamed officials considering the removal of 401k tax deduction.  That's not going to fly, but if it does for some odd reason, we'll be left with only Roth 401k and Cash Balance.  If this happens, I see everyone running to set up CB plans (which would be a total disaster, in my opinion, because these are very complex and not appropriate for just anyone).  In any case, I believe it when I see it, and there would be a big wave of opposition, because this would hit pretty much all of the working taxpayers who also happen to vote.