Obama says no to fat retirement accounts
The president's upcoming budget plan is expected to cap IRA balances at $3 million.
The president's budget plan, expected to be introduced next week, would ban anything above $3 million in individual retirement accounts, Bloomberg reports. Because those accounts get some key tax breaks, capping them would generate about $9 billion in revenue for Uncle Sam over the next 10 years.
Obama is essentially asking people this: How much do you really need for retirement? Some wealthy people are socking away millions in these accounts, much more than they actually need, the White House said in a statement.
A White House official put it this way to Politico: Obama's proposal caps retirement accounts at an amount that would provide someone about $205,000 per year in retirement.
You could put as much as you want in your Wells Fargo (WFC) savings account or other accounts. It's just the tax-favored retirement accounts that are being scrutinized here.
As it stands, some retirement accounts are so loaded that people are using them more for estate planning. One accountant told Bloomberg that the wealthy are using retirement accounts to pass money to heirs in a tax-friendly way.
The White House isn't mentioning Romney by name, but his IRA was in the public spotlight last year. At one point, the account exceeded $100 million. Most taxpayers are limited to a $5,500 contribution for 2013, Bloomberg reports.
So far, Obama isn't saying how he plans to cap IRA amounts. The $3 million cap would apply to the total of all of a person's tax-favored retirement accounts, not a single account.
- Millionaires are raking in unemployment benefits
Next will be the smaller IRA's and 401Ks. For those that save so not to rely on Social Security, let's penalize. He wants EVERYONE to be reliant on the government programs. From community organizer to the WORST President EVER
How much do you need for retirement? That's a good question. Apparently here in California, Police, teachers, firefighters - all noble professionals -but for some reason THEY need 80% of their highest paid year salary from age 55 on for the rest of their lives.
Now I ask you - how much money does an individual have to sock away to equal 80% of their highest salary for the next 40 years (living to 95 is not inconceivable)?
Again, who elected this "FRAUD IN CHIEF" as KING OF AMERICA.
This is America - land of the free not Communist China. I have never made a 6 figure salary and have over $500K in retirement accounts. I have made chooses how to deal with MY MONEY and I do not need this **** telling me what I can do and can't do with MY MONEY.
Cut the class welfare out and let the free market play out. Everyone will be better off.
And do you really think you're going to get tax free benefits from your ROTH IRA just because the title on the application says ROTH. This will be the ultimate test of politics as these accounts can be quite attractive over the long-term. Trouble is I just don't know what the rules are going to be over the long-term. But, I can make an educated guess based on the integrity of our present politicians. Careful, careful.
Obama is such a financial guru - lets see he (1) wrote a book and (2) is constantly work on his public relations. No experience here - I guess we're in for a long recession. Ah, but we already knew that....and voted for more of the same. Dumbing Down of America.
His ideas are so foolish and so redundant - everything points to those with success as being "the problem." A shallow thinker, at best, with no solutions, just divisive jealousy.
Whats next? Hey people if you smile you will get fined. how abouts that?
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