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  • September 22, 2010 at 8:59 PM #17986
    BigGovernmentIsGood
    Participant

    Keep your hand on your wallet and a close eye on your 401(k). Banksters are gearing up to go after the $4 trillion in 401(k) accounts:

    This week, a bevy of retirement-income experts said annuities should be offered as a 401(k) investment option as well as a default distribution option for when workers leave a company. The experts were speaking at a two-day hearing on lifetime-income options for retirement plans hosted by the U.S. Labor Department’s Employee Benefits Security Administration (EBSA) and the Treasury Department.

    http://www.marketwatch.com/story/annuities-may-be-coming-to-401ks-2010-09-20

    I imagine that there will be some mighty pissed off retirees if their 401(k) money is transferred into an annuity by default. I know it would tick me off.

    September 22, 2010 at 9:33 PM #608303
    Coronita
    Participant

    I know people who are more pissed off that the government is forcing them to make mandatory distributions after a certain again, and doubly pissed off that they are facing a huge taxation “penalty” for needing to take out a distribution beyond a certain level…

    Actually, one my my family friends planned it very well. Instead of max out on a 401k, what they did was just contributed enough to get the company match. They took the rest of the money post-tax AND saved it in post tax accounts…Then took out a huge cash out loan on their primary home, and used the proceeds to buy rental property..Kept refinancing and refinancing and refinancing.Rationale? The huge mortgage payment was a nice itemized deduction, such that they were already hitting the upper limits on deductions that additional incentives from 401k was not needed….

    Now in their golden years, they don’t have the “401k oversaving hangover”, and their rental property has all been paid off, and during their wage years, they had a reasonable tax rate due to the mortgage deduction. Folks were a genius..

    September 22, 2010 at 9:33 PM #609372
    Coronita
    Participant

    I know people who are more pissed off that the government is forcing them to make mandatory distributions after a certain again, and doubly pissed off that they are facing a huge taxation “penalty” for needing to take out a distribution beyond a certain level…

    Actually, one my my family friends planned it very well. Instead of max out on a 401k, what they did was just contributed enough to get the company match. They took the rest of the money post-tax AND saved it in post tax accounts…Then took out a huge cash out loan on their primary home, and used the proceeds to buy rental property..Kept refinancing and refinancing and refinancing.Rationale? The huge mortgage payment was a nice itemized deduction, such that they were already hitting the upper limits on deductions that additional incentives from 401k was not needed….

    Now in their golden years, they don’t have the “401k oversaving hangover”, and their rental property has all been paid off, and during their wage years, they had a reasonable tax rate due to the mortgage deduction. Folks were a genius..

    September 22, 2010 at 9:33 PM #609052
    Coronita
    Participant

    I know people who are more pissed off that the government is forcing them to make mandatory distributions after a certain again, and doubly pissed off that they are facing a huge taxation “penalty” for needing to take out a distribution beyond a certain level…

    Actually, one my my family friends planned it very well. Instead of max out on a 401k, what they did was just contributed enough to get the company match. They took the rest of the money post-tax AND saved it in post tax accounts…Then took out a huge cash out loan on their primary home, and used the proceeds to buy rental property..Kept refinancing and refinancing and refinancing.Rationale? The huge mortgage payment was a nice itemized deduction, such that they were already hitting the upper limits on deductions that additional incentives from 401k was not needed….

    Now in their golden years, they don’t have the “401k oversaving hangover”, and their rental property has all been paid off, and during their wage years, they had a reasonable tax rate due to the mortgage deduction. Folks were a genius..

    September 22, 2010 at 9:33 PM #608943
    Coronita
    Participant

    I know people who are more pissed off that the government is forcing them to make mandatory distributions after a certain again, and doubly pissed off that they are facing a huge taxation “penalty” for needing to take out a distribution beyond a certain level…

    Actually, one my my family friends planned it very well. Instead of max out on a 401k, what they did was just contributed enough to get the company match. They took the rest of the money post-tax AND saved it in post tax accounts…Then took out a huge cash out loan on their primary home, and used the proceeds to buy rental property..Kept refinancing and refinancing and refinancing.Rationale? The huge mortgage payment was a nice itemized deduction, such that they were already hitting the upper limits on deductions that additional incentives from 401k was not needed….

    Now in their golden years, they don’t have the “401k oversaving hangover”, and their rental property has all been paid off, and during their wage years, they had a reasonable tax rate due to the mortgage deduction. Folks were a genius..

    September 22, 2010 at 9:33 PM #608389
    Coronita
    Participant

    I know people who are more pissed off that the government is forcing them to make mandatory distributions after a certain again, and doubly pissed off that they are facing a huge taxation “penalty” for needing to take out a distribution beyond a certain level…

    Actually, one my my family friends planned it very well. Instead of max out on a 401k, what they did was just contributed enough to get the company match. They took the rest of the money post-tax AND saved it in post tax accounts…Then took out a huge cash out loan on their primary home, and used the proceeds to buy rental property..Kept refinancing and refinancing and refinancing.Rationale? The huge mortgage payment was a nice itemized deduction, such that they were already hitting the upper limits on deductions that additional incentives from 401k was not needed….

    Now in their golden years, they don’t have the “401k oversaving hangover”, and their rental property has all been paid off, and during their wage years, they had a reasonable tax rate due to the mortgage deduction. Folks were a genius..

    September 23, 2010 at 3:44 PM #608705
    NicMM
    Participant

    Don’t they need to pay tax for their rental income?

    September 23, 2010 at 3:44 PM #609689
    NicMM
    Participant

    Don’t they need to pay tax for their rental income?

    September 23, 2010 at 3:44 PM #608618
    NicMM
    Participant

    Don’t they need to pay tax for their rental income?

    September 23, 2010 at 3:44 PM #609258
    NicMM
    Participant

    Don’t they need to pay tax for their rental income?

    September 23, 2010 at 3:44 PM #609368
    NicMM
    Participant

    Don’t they need to pay tax for their rental income?

    September 23, 2010 at 4:46 PM #609704
    Coronita
    Participant

    [quote=NicMM]Don’t they need to pay tax for their rental income?[/quote]

    Yes, but that’s after taking deductions from depreciation, cost of repair etc. Plus the tax on income (small) was during their earning years..Then post retirement they went from rental property to primary property, and sold, taking the tax free cap gains limit….nice, huh?

    September 23, 2010 at 4:46 PM #608720
    Coronita
    Participant

    [quote=NicMM]Don’t they need to pay tax for their rental income?[/quote]

    Yes, but that’s after taking deductions from depreciation, cost of repair etc. Plus the tax on income (small) was during their earning years..Then post retirement they went from rental property to primary property, and sold, taking the tax free cap gains limit….nice, huh?

    September 23, 2010 at 4:46 PM #608633
    Coronita
    Participant

    [quote=NicMM]Don’t they need to pay tax for their rental income?[/quote]

    Yes, but that’s after taking deductions from depreciation, cost of repair etc. Plus the tax on income (small) was during their earning years..Then post retirement they went from rental property to primary property, and sold, taking the tax free cap gains limit….nice, huh?

    September 23, 2010 at 4:46 PM #609273
    Coronita
    Participant

    [quote=NicMM]Don’t they need to pay tax for their rental income?[/quote]

    Yes, but that’s after taking deductions from depreciation, cost of repair etc. Plus the tax on income (small) was during their earning years..Then post retirement they went from rental property to primary property, and sold, taking the tax free cap gains limit….nice, huh?

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