401K Plans and IRAs Eyed to Alleviate Fiscal Cliff

The ever expanding debate on averting financial consequences in early 2013 has refocused attention on concerns that the coveted 401 k plan and IRAs, long considered the last bastions of private retirement savings which replaced pensions for most working Americans may be tapped. The plans may be slated for dramatic changes ranging from limiting deductions, to retroactive taxation and to possibly include a nationalization scheme by imposing government mandated plans on employers with savings allocated exclusively to Treasury bonds.

An Investment Company Institute study published this month illustrates that U.S. retirement assets at the end of second quarter 2012, total $18.5 trillion. Two components are 3.5 trillion in IRAs and $5.1 trillion in 401(k) plans. These therefore present very tempting deficit-funding sources for the Obama administration to help close a spiraling budget gap that is approaching $20 trillion.

LegitSlater

LegitSlater is a SayAnythingBlog.com contributor who focuses on features primarily pertaining to state and local government as well as political parties, but has been known to dabble in other areas. LegitSlater has also been known to pinch hit for Rob when he is out and about in his worldly travels, or attending the occasional Yankees-Twins series. LegitSlater's numerous awards include the personal satisfaction received from informing the vast readership of SAB, spurring respectful debate, and hunting the trophy sacred cows which have been otherwise deemed off limits by the traditional media, elected officials, and the political parties.

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