- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Rand Paul's 401k idea
Posted on 12/5/19 at 8:12 am
Posted on 12/5/19 at 8:12 am
Rand Paul is proposing a bill that would allow people to withdraw 401k money penalty free to pay off student loans.
That's all well and good, but I have a better proposal.
Make ALL 401k withdrawals TAX free if you're willing to forego 1/2 of your social security benefits (not including Medicare).
That's all well and good, but I have a better proposal.
Make ALL 401k withdrawals TAX free if you're willing to forego 1/2 of your social security benefits (not including Medicare).
11
Posted on 12/5/19 at 8:15 am to NikolaiJakov
I have a better idea. How about Im just allowed to stop putting into social security all together and keep my money and then I can decide how I want to invest. And my 401k should be tax free anyway. Damn govt thieves.
Posted on 12/5/19 at 8:17 am to NikolaiJakov
Doesn't matter. You can make all 401K withdraws penalty and tax free as well as allow early withdraw of SS. and when these people are broke and too old to work they'll cry because they have no retirement and want the guvment to support them.
Irresponsible people will always do irresponsible things. and cry poor me when it's over with.
Irresponsible people will always do irresponsible things. and cry poor me when it's over with.
Posted on 12/5/19 at 8:18 am to NikolaiJakov
It's an awful idea that will just inflate the bubble even more.
Posted on 12/5/19 at 8:19 am to NikolaiJakov
Will never happen...the damage to the market would be too great, and Wall Street would never go for it
Posted on 12/5/19 at 8:19 am to pakowitz
quote:
I have a better idea. How about Im just allowed to stop putting into social security all together and keep my money and then I can decide how I want to invest. And my 401k should be tax free anyway. Damn govt thieves.
All of this.
Posted on 12/5/19 at 8:21 am to NikolaiJakov
Give up half permanently, or just in the year you choose to take out 401k money tax free?
Posted on 12/5/19 at 8:21 am to NikolaiJakov
Or how about just make it tax free because it’s our fricking money!
Posted on 12/5/19 at 8:22 am to Snipe
quote:
Irresponsible people will always do irresponsible things. and cry poor me when it's over with.
Posted on 12/5/19 at 8:23 am to NikolaiJakov
Best idea - shrink government and government programs in order to reduce taxation.
Give me the 34% I pay in taxation and let me invest that/pay off debt.
Give me the 34% I pay in taxation and let me invest that/pay off debt.
Posted on 12/5/19 at 8:25 am to NikolaiJakov
quote:
allow people to withdraw 401k money penalty free to pay off student loans
I like this actually. Or even allow workers to pay student loans pretax from their paychecks in the same manner that they put into 401K. Allow both options actually.
Posted on 12/5/19 at 8:28 am to Midget Death Squad
I love it too. Not sure why it is getting so much hate. It is basically an FSA for you or your spouse's student loans up to $5k a year. He also wants to remove the limitation on student interest deduction.
Posted on 12/5/19 at 8:29 am to pakowitz
quote:
I have a better idea. How about Im just allowed to stop putting into social security all together and keep my money and then I can decide how I want to invest.
I'd even be willing to compromise at this point. I'll give up SS benefits, but I'll still contribute half (6.2%) as long as I can do what I want with the other half.
shite I honestly wouldn't even care if they make the half you save compulsory into a retirement account. But it has to be YOUR account that you direct how you want.
Posted on 12/5/19 at 8:34 am to BamaScoop
quote:
Or how about just make it tax free because it’s our fricking money!
Unless you are proposing that we should do away with income tax altogether; why would a traditional 401k withdrawal be tax free when you took advantage of the tax deferral aspect by investing it?
On the subject at hand, I like the idea of financial hardship being included as one of the reasons for penalty free withdrawals from 401(k). But, as others have pointed out, it will just keep people from being able to build their wealth because they would constantly dip into it.
Posted on 12/5/19 at 8:40 am to Zipfer2022
quote:
He also wants to remove the limitation on student interest deduction.
would have to be done or else it would lead to double dipping in tax breaks
Posted on 12/5/19 at 8:42 am to Snipe
I’d love to be able to opt out of SS and put that money in a retirement account that actually gains value
Posted on 12/5/19 at 8:56 am to NikolaiJakov
It wouldn’t make sense to cash out your 401k which is earning 8%-12% a year to pay off student loans that are costing you 2%-4% a year in interest. Unless I’m complete off in interest rates for student loans, I don’t feel this would be a good solution. Also, the future worth of that money compounding over time is worth way more than the student loans with low interest.
Posted on 12/5/19 at 9:26 am to pakowitz
quote:
I have a better idea. How about Im just allowed to stop putting into social security all together and keep my money and then I can decide how I want to invest.
Ron Paul has advocated for this as a natural way to wind down Social Security.
Posted on 12/5/19 at 9:48 am to pcolatiger28
I agree with your statement, but
I have heard people having interest rates as high as 12%, some may be even higher. I think the higher rates are from private lenders and not the ones.
From the people that I know that still have loans, their rates were in the 5.75-8%. When I refinanced mine, I was able to get it down to 4.35% w/ a credit score over 800.
The odd part about this is I don't know many college kids with 401(k)s. And if they do, they are just starting to invest so not sure how this will help. If anything, wouldn't it be more practical for these individuals to stop investing and put that money towards the payment?
quote:
student loans that are costing you 2%-4% a year in interest.
I have heard people having interest rates as high as 12%, some may be even higher. I think the higher rates are from private lenders and not the ones.
From the people that I know that still have loans, their rates were in the 5.75-8%. When I refinanced mine, I was able to get it down to 4.35% w/ a credit score over 800.
The odd part about this is I don't know many college kids with 401(k)s. And if they do, they are just starting to invest so not sure how this will help. If anything, wouldn't it be more practical for these individuals to stop investing and put that money towards the payment?
Posted on 12/5/19 at 9:50 am to NikolaiJakov
quote:
Make ALL 401k withdrawals TAX free if you're willing to forego 1/2 of your social security benefits (not including Medicare).
Rep. NikolaiJakov (D)....this is fricking stupid and you should feel bad
Page 1 of 2
Back to top
Follow TigerDroppings for LSU Football News