Government Takeover of IRA

LAST UPDATE: March 2nd, 2020

There is hell to pay if this happens...





Guard Your Wallet

Below are some past proposals, that did not pass as of 2019:

Uncle Sam HandoutYou may only have one defense.  Stop it before it happens!  Delaying any action may freeze your options very soon!

The time to object ended on May 3rd, 2010.  The United States Department of Labor feels you are not able to manage your own IRA or other pension money both at work or in your own personal and private IRA accounts.  So, they have written a proposal last February to help you out.  Or more like, to help the money out of your pocket and into their hands!

If this moves forward and is put into effect, the only defense you may have is to call or write your congressman and legislators to show your disapproval about government intervention with your retirement money. 

Specifically, you can read the proposed rules:  Suggested Rules for IRA's and other Retirement Plans or just download the PDF file if you want to print and read them.  But the proposal doesn't contain "all" of the plans they have for your pension money.  There are also proposals that could limit how and how much retirement money you can withdraw.

So, they have a deal for you.  They want to take over your funds from you, then issue an annuity for your retirement income that has lifetime payments.  While the media concentrated on national health care, the recent oil spill and our little controversy here in Arizona over immigration, this situation has come to a head largely with the public not knowing about it.


The TruthThe truth may not set your IRA or other retirement money free in this case, but at least you should know about proposals that could limit your options in the future.  The truth is that when you buy a lottery ticket you are asked if you want "cash" or "annuity".   Because if you win a million dollar lottery, you are going to walk away with about 1/2 of the money before taxes if you choose the "cash" option. 

You see, it takes about $500,000 to buy the annuity that will pay you a million dollars over a 20 year period.  It is called "time value of money" and money due in the future is discounted with a reasonable expected rate of return since it is not needed right away to pay your monthly or annual annuity payments.

The Labor department proposal doesn't mention it, but others have.  It's like the lottery ticket. Give us your principal and we will give you lifetime payments????

The truth is that labor unions can no longer sustain the big pension payments due their retirees. Add in mismanagement and other things that can make money disappear BEFORE the person owed retirement income gets a payment  -- then you can see why this proposal exists. 

If push comes to shoving... their may be a takeover and perhaps, overnight without notice to you.                     


Man and ScrewThat $200,000 401(k) reduces instantly to $100k in politician's hands - never to be seen again. The other $100k (less if you are still young) goes directly in an insurance annuity that will promise to pay you lifetime monthly income in the future. Perhaps, the government will be the insurance company...


Is This A New Proposal?

No.  It was proposed back in 2008.  It was dreamed up as a way to provide instant and quick money into the U.S. Treasury.

The excuse that that 2008-2009 financial meltdown we all painfully endured was used as a reason to make it a viable option to feed the treasury during a financial emergency.

Visit You Tube and review a few of these videos just to get better educated on this subject:

inherited ira

News & Updates by M.D. Anderson...

If The Fat Lady Stands Up and Starts Singing - Kiss Control of Your Retirement Plan Goodbye!

October 1, 2014

The national health care program (Obamacare) was proposed and didn't look like it would go anywhere. Today, it is the law of the land. The $5,250,000 per tax payer death tax exemption was proposed and went no where a few years ago. Then suddenly, it was dusted off and became the law of the land in December 2011 and was effective January 1, 2012 for all death estates thereafter.

So, when the U.S. government now in charge suddenly decides it is time to invoke this proposal brewing from 2008 to present - don't be surprised. It may be automatic without any further input from you as a citizen, since the time period has ended for outside tax payer opinions. I'm just saying.... it isn't over until the fat lady sings! So don't forget to keep telling your political people "Not to Touch My IRA!".

Government Intervention into Your IRA or 401-k plan - Updates

May 27, 2011

A current proposal has been suggested known as "The Savings Enhancement by Alleviating Leakage in 401(k) Savings Act of 2011".  The name alone should give it away! Congress has gone nuts. You would think this was a bill to govern nursing homes...

But, we are in a day and age of crazy stuff and this bill is positive proof that Uncle Sam wants his hand firmly on your wallet and especially, he wants to get closer between you and your 401(k) plan held by a professional Trustee.


Watch Closely - Don't Let Your IRA be Taken Over!

January 10, 2011

Big Brother Watching

A rogue climate exists even more as we roll into a new year here.  Be very careful in your 2011-12 planning to guard against any Inherited IRA or Traditional IRA proposal that ties your money up long term or restricts your ability to "cash in", convert, transfer or move the funds elsewhere quickly.

Recent Republican Response


(SENT 5/3/10)

The Honorable Hilda L. Solis
U.S. Department of Labor
200 Constitution Avenue, NW
Washington, DC  20210

The Honorable Timothy Geithner
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC  20210

Dear Secretaries Solis and Geithner:

As members of the Republican Savings Solutions Group, we write today to express our strong opposition to any proposal to eliminate or federalize private-sector defined contribution pension plans, such as 401(k)s, or impose burdensome new requirements upon the businesses, large and small, who choose to offer these plans to their employees.

In the Annual Report of the White House Task Force on the Middle Class, Vice President Biden discussed at length the creation of so-called “Guaranteed Retirement Accounts, (GRAs)” which would provide for protection from “inflation and market risk” and potentially “guarantee a specified real return above the rate of inflation” -- presumably at taxpayer expense.  In the Report, the Vice President recommended “further study of these issues.”

The Vice President’s comments are troubling, insofar as they come on the heels of testimony before Congress from supporters of GRAs proposing to eliminate the favorable tax treatment currently afforded to 401(k) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary -- again, with a government subsidy.  These advocates would, essentially, dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen.  This despite data showing that 90 percent of households have a favorable opinion of the existing 401(k)/IRA system.

In light of these facts, we write today to express our opposition in the strongest terms to any effort to “nationalize” the private 401(k) system, or any proposal that would dismantle or disfavor the private 401(k) system in favor of a government-run retirement security regime.

Similarly, and more recently, the Departments of Labor and Treasury have jointly issued a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options.”  While we appreciate the Departments’ seeking guidance and information from all parties and stakeholders in advance of regulatory activity, we strongly urge that the Departments not proceed with any regulation in this area before they have carefully and thoroughly considered all of the information received.

More specifically, we urge that the Departments take no action to mandate that plan sponsors -- often, small businesses -- include a “lifetime income” or “annuitization” option if they choose to offer a 401(k) plan to their employees, or that beneficiaries take some or all of their retirement savings in such an option.  Data shows that 70 percent of Americans oppose the concept of a mandated annuity or government payout of their 401(k) plan. On a more fundamental level, Congress should not be in the business of choosing “winners” and “losers” among retirement security stakeholders.  Instead, we urge the Departments to make it easier for employers to include retirement income solutions in their savings plans and to help workers learn more about the value of their retirement savings as a source of retirement income.  Finally, to the extent new mandates and bureaucratic red tape from Washington push small employers out of the business of offering these plans to their employees, we would submit such an effort weakens, rather than strengthens retirement security. 

We appreciate your consideration of our views in these important matters and stand ready to work with you and the Administration to promote secure and adequate retirement savings for all Americans. 


House Republican Leader John Boehner (R-OH)
Rep. John Kline (R-MN)
Rep. Dave Camp (R-MI)
Rep. Sam Johnson (R-TX)
Rep. Dean Heller (R-NV)
Rep. Brett Guthrie (R-KY)
Rep. Michele Bachmann (R-MN)
Rep. Pat Tiberi (R-OH)
Rep. Bob Latta (R-OH)
Rep. Erik Paulsen (R-MN)
Rep. Lynn Jenkins (R-KS)
Rep. Ed Royce (R-CA)
Rep. Buck McKeon (R-CA)

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