I mentioned in a previous article why you want to consider the Roth IRA – that government, with their budget deficits and the election of multiple new members of the socialist party to power, will go after an easy minority: savers.
Apparently, before Obama was even elected, democrats had been working on legislative ideas to kill the 401(k) and replace it with a limited tax credit. There would also be a scheme where investors could choose between buying 3% government inflation bonds or opt for the 401(k) with no tax benefits. Jeez it’s great to be in the new socialist America, because socialism worked so well in places like South America (revolutions every 3-5 years) and Europe (unemployment from 11-20% depending on the country in many places).
See an article on the subject here:
IBD Article on 401k Deductions
I’m sure finding a way to make you pay taxes on your IRA too is coming soon. Call your elected officials before these clowns take all your money.
Chris Grande
