Does the President's new super committee put your retirement plan at risk?
by Larry Grossman
It certainly seems so. There is once again discussion of the new Automatic IRA and Automatic 401k, which I have written about in the past. (Think J. Mark Iwry.) My analysis of the proposal showed that it was likely contributions would go into some form of government bond with little or no other options.
The newest talk on the Hill is even more disturbing. The super committee is being urged to consider a new proposal from the Washington-based Brookings Institution. In its simplest form the proposal calls for an end to the current system of tax deductions for contributions to retirement plans, replacing them with a flat tax credit. On its surface that may not seem such a bad idea but as they say, the devil is in the details.
The Brookings proposal purports to actually generate 450 million in additional revenue for the federal government. The credit would help those in a 10% or lower tax bracket; have a neutral effect for those in the15% bracket, while penalizing those in a higher bracket.
Especially concerning to me was language used during the September 9th meeting, "RETHINKING INCENTIVES TO SAVE FOR A SECURE RETIREMENT".
It "will put us in a situation where we can start to even out the distribution of wealth".
There is much more in the report that should be of grave concern to you and your retirement plan. A plan that eliminates your deduction, generates additional revenue, and begins to redistribute the wealth in our country is just another sign of how they plan on attacking the retirement plan system as we know it today.
Everything I read tells me the attack on retirement plans is well underway even though it is rarely reported on in the mainstream media. From Automatic IRA's, to forced ownership of government bonds to the redistribution of wealth, isn't it time you took part of your retirement plan offshore for safety?
Feel free to contact me for a copy of the report or questions you may have.