Guard Your Wallet
You 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
TRUTH
The
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.
HOW
DOES THIS DIRECTLY AFFECT ME?
That $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...
OUR FIRM HAS SOME THOUGHTS AND STRATEGIES FOR
YOU TO PROTECT YOURSELF NOW IF THIS EVENTUALLY DOES BECOME LAW...
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:
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.
READ MORE ABOUT IT:
govtrack.us
Watch Closely - Don't Let Your IRA be Taken Over!
January 10, 2011
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
READ IT SO YOU
FULLY UNDERSTAND THE GRAVITY AND RISK YOU FACE!
(SENT 5/3/10)
The Honorable Hilda L. Solis
Secretary
U.S. Department of Labor
200 Constitution Avenue, NW
Washington, DC 20210
The Honorable Timothy Geithner
Secretary
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.
Sincerely,
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)
Important Link On This Subject:
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and
Human Events
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1-800-782-2806
M.D. Anderson, AZCLDP, Accountant
