{"id":12563,"date":"2013-04-29T18:20:55","date_gmt":"2013-04-29T18:20:55","guid":{"rendered":""},"modified":"2013-04-29T18:20:55","modified_gmt":"2013-04-29T18:20:55","slug":"the_regime_wants_to_cap_your_401_k","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2013\/04\/29\/the_regime_wants_to_cap_your_401_k\/","title":{"rendered":"The Regime Wants to Cap Your 401(k)"},"content":{"rendered":"

\"Listen<\/a><\/p>\n

RUSH: Your 401(k) plan, there\u2019s more information now about what\u2019s about to happen to it if Obama gets his way. Obama\u2019s new budget proposal aims to limit your nest egg by setting a cap on the amount of contributions you can make over the term of your life, and that number is $2.7 million. At $2.7 million you can no longer — if he gets his way, that would be the maximum size of your 401(k). <\/p>\n

Now, Obama says the reason he\u2019s doing this is to simplify the tax code. The proposal, if it becomes law, would be the first time there has been a limit on the balances one could build up in a defined contribution plan such as a 401(k) or an IRA. Peter Brady, a senior economist at something called the ICI, said, “The proposal to place a dollar cap on individual retirement saving accounts would add complexity and confusion to our nation\u00c2\u2019s system for retirement savings.”<\/p>\n

<\/a><\/p>\n

Now, why would anybody do this? Let\u2019s trace the history of the 401(k). I remember where I was when I first heard about it. Well, I don\u2019t remember exactly. I don\u2019t know if I was in Kansas City or I moved to Sacramento when this thing was first proposed. But, boy, it sounded like a good deal to me. What you could do was designate a certain percentage of your gross income to your 401(k) or IRA. And it was tax-free. That amount that you put in your retirement plan would be deducted from your gross earnings, and you would then pay your income tax on what was left. If you make 50 grand, you could put $5,000 away per year and your taxable income would be $45,000. <\/p>\n

This was done because at the time it was said Americans weren\u2019t saving enough. So this was an incentive. And it was a good deal. It was a really good deal for a lot of people. But then about three years ago, four years ago the government decided that all of this tax-free money was costing them, and they needed to get it back. And so there was a professor at the New School, a woman, who came up with a proposal, and it was endorsed by George Miller, Democrat from California. Because all of those $5,000 that I just mentioned, all of that money the government wasn\u2019t taxing, why, it amounted to billions and billions. And since all money is government\u2019s, they figured they had to stop this. <\/p>\n

I always thought the purpose of the plan was for people to be able to provide their own retirement, put less pressure on Social Security, a defined contribution benefit plan inspired savings, it built for retirement. You could go get the money before retirement age, but there were penalties if you withdrew it for an emergency or what have you, so the incentive was to clearly save it for your retirement. A good thing. Now the government feels cheated, because it\u2019s all their money, see. <\/p>\n

<\/a><\/p>\n

So the proposal from the babe at the New School was, the government will purchase everybody\u2019s 401(k) or IRA at the value it was a couple of weeks before the crash of 2008. They\u2019ll just give you that amount of money, and it goes into an account, and then you can no longer make any contributions to it. It only will grow by virtue of a government promise of one to 3% growth every year. That\u2019s it. Even if the market index grew 10%, doesn\u2019t matter, they would say between one and three is the guarantee. Because they\u2019ve gotta stop this contribution aspect. That\u2019s just costing \u2019em too much money. Never mind that it was great for the citizens. Never mind that it made all kinds of sense. It was costing the government money. <\/p>\n

Now Obama\u2019s come along and he wants to add to that plan by now saying that the maximum size any plan can be, any total account can be is $2.7 million. Do you know why? ‘Cause that\u2019s all you need. Obama believed that that\u2019s all you need for a comfortable retirement, $2.7 million, theoretically, in his budget will generate an annual income of $200,000, and that\u2019s plenty. You don\u2019t need any more. So the government\u2019s changing the rules in the middle of the game, after telling you at the outset how great it could be. Imagine if somebody were able to amass, I don\u2019t know, $5 million, wouldn\u2019t that be good? Wouldn\u2019t it be better if more people were taking care of themselves? Wouldn\u2019t that benefit everybody? <\/line><\/p>\n

We don\u2019t want that to happen. We don\u2019t want people to be independent. And besides, you don\u2019t need any more than $2.7 million in your overall retirement account. Who the hell are you? That\u2019s more than you need. We\u2019re being generous with you with that. What the hell business is it, in the case of your IRA or 401(k), all of that is your money, bud, all of it. The fact that the government hasn\u2019t taxed it is their problem. They set up the rule. You didn\u2019t even demand it. This is one of these things that just came along. But you might end up having too much, more than you need. See, we\u2019ve got a national debt to deal with. We got deficits to deal with, and those deficits, they\u2019re your fault, because your IRA isn\u2019t being taxed enough. That\u2019s why there\u2019s a deficit, you\u2019re not paying enough taxes.<\/p>\n

It\u2019s not Obama\u2019s fault for spending too much. It\u2019s not Congress\u2019 fault for spending too much. It\u2019s not the government\u2019s fault because their irresponsible. Nope, it\u2019s your fault, bud, and we\u2019re gonna limit you to 2.5 max because that\u2019s all you need. This is the last thing Obama ought to be looking at, especially as a means of wiping out deficits and so forth. All this means, once again, is that your independence, your self-reliance is a threat to them. Your being able to take care of your retirement is a threat. Don\u2019t doubt me. It\u2019s exactly what it is. It\u2019s exactly how they see it. Self-reliant individuals are the biggest threat liberals face. Well, maybe not the biggest, but it ranks right up there.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Your 401(k) plan, there\u2019s more information now about what\u2019s about to happen to it if Obama gets his way. Obama\u2019s new budget proposal aims to limit your nest egg by setting a cap on the amount of contributions you can make over the term of your life, and that number is $2.7 million. At […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nThe Regime Wants to Cap Your 401(k) - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rushlimbaugh.com\/daily\/2013\/04\/29\/the_regime_wants_to_cap_your_401_k\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"The Regime Wants to Cap Your 401(k) - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: Your 401(k) plan, there\u2019s more information now about what\u2019s about to happen to it if Obama gets his way. 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