re: Many posters here are saying they'll come after our 401K

Take away pre-tax contributions I expect. They are also talking about annual capital taxes on investments (not just when you sell your stocks).

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Many posters here are saying they'll come after our 401K


Please explain in what way, shape and form this happens?

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During a Closed Door Session of Congress, halt all 401(k) account withdraws, transfers, etc while they have an open and transparent 'debate' on taking your money would be my guess.

Most people won't withdraw in time and then poof, we all have Guaranteed Retirement Accounts

They're not taking your money, they're protecting it from the volatility of the stock market!

Less than a 1/3 of Americans invest in a 401k. Politicians know this even if you didn't. They can "convert" the funds for the common good.

They’ll come hard for Inheritance taxes- that is a rich source of relatively untapped money and apparently all whites have become rich through money handed down through generations due to the free slave labor.

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reduce your Social Security if you are also taking 401k withdrawals. = This already happens. If you will reach full retirement age in 2021, you can earn up to $4,210 per month without losing any of your benefits, up until the month you turn 66. But for every $3 you earn over that amount in any month, you will lose $1 in Social Security benefits. Conceivably, you can earn income to a point where you will receive exactly ZERO dollars of Social Security. So, if you hear about or read about "Means Testing" is coming...that's BS, it's already here.

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That is incorrect. 401K withdrawals are not earned income and do not impact Social Security benefits. What you are referring to is if someone still has a job.

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Ahhh,...re-read. I am correct. If you are receiving SS benefits and have a job and taking 401k distributions that's one scenario. The other second scenario is receiving SS benefits and DO NOT have a job and taking 401k distributions. Regardless, the 401k distribution + job Earned Income = Taxable Income ** AND ** if you do not have a job then 401k distribution = Taxable Income.

Taxable Income is used to determine SS benefits.

Read on...

This bolded statement is taken from the poster I was replying to reduce your Social Security if you are also taking 401k withdrawals.

When taking Distributions from a 401K it's called "Taxable Income", not Earned Income.

I am retired and 61 - turn 62 in 2021. I am converting $300k a year from a Traditional IRA to a Roth IRA. If I applied for Social Security benefits starting at age 62(in 2021)the $300k conversion is labeled Taxable Income, not Earned Income. That conversion alone would prevent me from receiving any SS benefits at age 62 and I do not have a job.

I have to complete all my conversions before applying for SS benefits. If I apply for SS benefits and receive ZERO - I lock in my SS benefit for the remainder of my life because I applied for them; hence, you wait until the conversions are completed and then apply. Otherwise, you cheat yourself out of a higher SS benefit.

Sadly taxing it is only the start. They will later take it completely in exchange for a govt monthly check.

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Well, sadly Joe did say he was going to make changes to our 401K accounts. As we all know, no one changes anything in DC unless they want to take more of your money. It’s called income redistribution.

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You bet your arse it is redistribution.

For you youngsters, here's a tip. I would have done this if someone told me years ago, but that kind of guidance wasn't around when I was young. It would have been good advice because I saved everything.

Put as much as you can in Roth IRA or Roth 401k. If you have to "backdoor" into a Roth, do it. (look up backdoor Roth is you don't know what it is)

If you have a 401k Roth at your job and you lose your job, leave the 401K Roth at your old job temporarily and do not take possession. Before accepting a new job/employment elsewhere, see if they have a 401k Roth. If possible, focus only on employers with 401K Roth's. When you get your new job, roll your old job 401K Roth into your new job 401K Roth (make sure your new job allows for the rollover). Keep doing these steps if your life has many job changes - it's not unusual. By the time you reach 55 and your 401K Roth is comfortably suited at your job - you can retire if you want to. Look up "Rule 55". There will be no penalty on your 401k Roth withdrawals.

Next - take your investable income and open a stock trading account. Focus on the "Dividend Aristocrats" - stocks that pay a consistent and high dividend track record (see AT&T) and keep investing in these stocks and have their dividends reinvest into the stock. At retirement, you can have the stock trading account send the dividends to you monthly/quarterly and never touch the principle. The tax rate on these dividends is based on Capital gains and you're looking at 20%. Better than personal tax rates by far. And, your Roth distributions are tax free.

If someone is telling you that your income will likely be lower at retirement than your job - lose that person as a friend or advisor. Who the hell wants less money? You have to aim high.

Good luck! Someone will read this who is 20-something and do it. I know they will. I'll be dead and gone when you retire, but you'll have a hell of a lifestyle!

Just remember to save all you can, because....if you don't live like the rest in the beginning, you certainly won't live like the rest in the end. Think about it.. (PS - I'm living proof of this paragraph)

Adios!

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The idea has been floated many times. With the current climate, it may finally gain some traction.

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When the numbers come out on how much wasn’t paid into SSI last year and how quickly it’s insolvent the demands will start on forcing 401k funds into it

here's the "how" .... from 2008:

https://www.carolinajournal.com/news-article/dems-target-private-retirement-accounts/