Obama's wants to cap tax credits on IRAs

You are free to save more money if you'd like, it just won't be taxed favorably.

They should be promoting higher balances so they can Cyprus you IMO.

If you want something to really be PO'd about, try this.

http://www.zerohedge.com/news/2013-04-10/fed-releases-names-early-fomc-minutes-recipients-include-employees-goldman-barclays-

Really?  President Obama has stated this "worldview" where he'll have us taxed on what we take out of our IRAs?  When??  Until you give me proof this is "what he's really after" I say that's quite a wild claim.

mmmmm... the blue one is soooo yummy.

I'd say it's more of a "he just wants to tax everything" sort of mindset so naturally that includes retirement withdrawals as well. 

To the OP, I saw an article on this and my jaw dropped when I read the following quote:

"Under current rules, some wealthy individuals are able to accumulate many millions of dollars in these accounts, substantially more than is needed to fund reasonable levels of retirement saving," the White House told Politico last week.

yikes...  Makes you think Cypress (US edition) would fit right within that type of mindset.  Nobody needs more the $3M, so we'll just take everything over that...

This is clearly the direction the entire world is going in. Or at least the western world. Be thankful you don't live in Spain. The latest from this disaster of a country is that the government has decreed that all foreigners living in Spain have until the end of April to file electronically (only) all their global assets. Its called Modelo 720. That means bank accounts, pension funds, retirement accounts, life insurance, property, and securities. And they want details- where it is, how much, dates, and account details. Failure to comply will result in 150% penalty of the value of the asset, and possible jail.

They claim this is for informational purposes only. If thats the case I can pursue my interest to buy a bridge in Mongolia. One might ask whats the end game here ? 1- Wealth tax. 2- Pass the information to foreign governments (key to electronic format only) for home country taxation. 3- Get foreigners to leave as after all its a country where unemplyment rate is 26%. Spanish inquisition here we go again.

Be prepared. The options available to solve a debt crisis are very limited. Its either more debt or take someone elses money to pay off the debt. If you live in a country like this get ready. People that have been successful and saved will be punished. Whether its in the form of new taxes higher taxes or outright its mine now. Its coming.

Aren't we already taxed on what we draw out of our traditional IRA's at retirement age?  Isn't that why you have post-tax dollars go into a Roth IRA and only capital gains tax apply?  I'm a long way from drawing any of my IRA money so I may be off on this.

Again, you are free to save as much money as you want but the government will only subsidize $3M of it.

how much do you need to live on when you retire?

if you have 3 mil saved.   You want to leave 1 mil to your kids and you spend 50k a year (without getting any SS or interest in a saving account or anything)  You will have to live to 105 ( assuming you retire at 65) to spend it all.  95 if you want to retire at 55.  That is still leaving 1 mil for your kids.

51k a year is the median household income in the us for 2012. 

if you have retirement fund money in savings and you DON'T put any of it in an interest-bearing account, you are doing it wrong.

No disagreement there. 

5% return on 3 mill is 150k a year.  You can still have 3x the median us household income per year and leave 3 mil for your kids when you die (That doesn't even include your house/condo).

It always devolves to this.  "You don't need that much."

To the guy who lives on the street your (not your, collective your) $45,000 a year salary is extravagant.  You don't NEED that vacation or tri bike.  You don't NEED that dinner out on the town.

It's none of your, my, and especially the government's business how much I need to retire.  When you retire you want to live a somewhat similar life to what you have lived while working.  In retirement you want to travel, enjoy life.  As you age you also need to account for increasing medical costs.  Or helping our your kids with possible financial issues.

The left believes that your money is not yours.  They think you owe your fair share to the state.  It's their money and they are trying to get it back anyway they can.  This is only the start.  Heaven help us if the left wins the mid terms in 2016.

And where are you getting a low risk 5% return these days?  That's your retirement.  You don't gamble that.  Try less than 1% in a low risk investment.

Not with that attitude you won't...

I love the way they word things:

"Removing the tax advantages for funds exceeding that threshold would save the government an estimated $9 billion over a decade, the budget estimates."

Translation:'... would increase taxes by $9 billion over a decade'

They're not 'saving money' they’re increasing taxes.  $3M is a large amount of money, but it is not an extravagant amount of money to have in a retirement account at retirement age.

Really? Then why do only .03% of people have this much? 

it's like just aboout anything else with the government.  present it to the taxpayers in a way that they are too lazy to try and understand or just don't care enough to give it a second thought.  For example, CPI.  There is so much manipulation and distortion with the calculations, yet most people believe inflation is no more than 2 percent because that's what the government tells them.

Nice generalization of those of us who actually think this is a good idea.

Tax preferred investments were supposed to help middle and lower income Americans begin saving for retirement.  They weren't intended to be a tax shelter for wealthy brokerage accounts.  It closes up a loophole that affects .03% of the IRAs in this country and .0041% of the 401ks.

I don't agree with how a lot of people feel about this, but I'm not going to assume they are lazy or don't care because they don't think the way I do.

It's like this with virtually any institution which wants to persuade people to buy into something. Government hardly has a monopoly on manipulation of language. Government, politicians in general, businesses, advertisers, pro-gun people, anti-gun people, pro-choice people, pro-life people, on and on.

Sorry, whose business is it what I do with my money that I earned from my hard work????????

This is disgusting

^^^^

I bit my tongue so that I wouldn't get in trouble but that is exactly what I was thinking.  I'll just lower my 401k contributions and buy more gold, silver and guns.  Our government can continue to devalue the dollar and passing bans so that they make my stuff continue to climb faster than anything dollar based.