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mediocrity legislated?

Discussion in 'Politics, Elections & Legislation' started by al3526, Feb 19, 2010.

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  1. al3526

    al3526 TS Member

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    for a second year money has been removed from my 401k and returned to me. i have yet to put in the full amount allowed by law ($16,500)as it seems that there is a rule in effect that mandates all contributions fall into some kind of bell curve. They (the fund to which i contribute) stated to me that i contributed substantially more than my co workers. Has anyone had this happen to them? it seems that because others fail to prepare for retirement i must suffer as well. the money is taxed as it comes back to me as income and if i reinvest it into a IRA it will be taxed a second time upon withdrawl. help al
     
  2. MTA Tom

    MTA Tom Active Member

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    What about a Roth IRA?
     
  3. alfermann66

    alfermann66 Member

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    Sorry Al, the same dog bit me some years ago when I was still working. Ostensibly, the irrational reason is that in addition to the $16,500 limit, there is another limit concerning the average amount of all contributors to the 401K. The top limit at that time was $2000, but being in the "Highly Compensated" class, I was allowed even less. I suggest you take the amount they returned to you, pay the taxes on it and put it into a Roth IRA.

    Buz
     
  4. al3526

    al3526 TS Member

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    it seems today that the govt is more likely to hinder those that take the initiative to prepare properly and do the right thing. i will most probably pay the tax on the funds and apply the balalnce to my mortgage. that is before im penalized for paying that off early too. thanks for the help al
     
  5. al3526

    al3526 TS Member

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    i belive that the roth ira are capped at a particular income level. thanks al
     
  6. kiv-c

    kiv-c Member

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    Alfermann has the right advice,I think. By the time Obama gets done screwing around, the tax rate will be on a par with Sweden's, and you'll have next to nothing left of your money! Better off to bite the bullet now and pay the lower rate.
     
  7. Setterman

    Setterman Well-Known Member

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    The Gubmit does not want money in 401K's, they want it circulated in the economy. Remember when Pelosi made the comment about taxing 401K's? There is a huge amount of money in 401K accounts and they have their eyes on it.
     
  8. al3526

    al3526 TS Member

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    forgive me for not being a model citizen. i should have lied about my income and purchased a house i could not afford and be up to my eye balls in credit card debt. i keep thinking about a comment posted here that stated: "a govt that takes from peter to pay paul can always count on the support of paul." al
     
  9. ou.3200

    ou.3200 Well-Known Member

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    With regard to paying the taxes now and putting it into a ROTH IRA, there is no guarantee that future legislators and administrations will not change the law and tax it again. They are trying to inflate the currency to tap the savings and retirement accounts now.
     
  10. bigdogtx

    bigdogtx Well-Known Member

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    al3526,,,,the income cap was taken off this year for conversions to a ROTH....
     
  11. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Deplorable Bitter Clinger in Liberal La La Land
    Liberal politicians = thieves. It's just that simple.
     
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