Monday, October 27, 2008


I only wish I published an article when I predicted this. I was examining my 401k last year and finally decided that the Roth 401k is the best choice for long term savings. I started my Roth in January of this year. I left my money in my 401k because the tax deferred money is not transferable. (I had hoped to transfer the money and pay off the taxes now.) When someone pays the taxes on the money going into a Roth 401k, the interest gained over time is nontaxable. When I retire this will be accessible to me completely without counting as income. Money coming out of my 401k when I retire will be taxable and counted as income but the Democrats are toying with the idea of taxing the 401k in another manner I have yet to learn the details about. Today, FOX news was discussing this when Megan was reporting around 9:30 AM. One, I believe Democrats will consider taxing the Roth 401k higher than the normal tax rate because the interest is nontaxable. Two, the interest could become taxable at a later date yet to be determined. Arguably, this could be considered double taxing. This would not provide Obama immediate tax relief dollars but would solidify his position on "money redistribution." Or it could provide a smaller tax rate than the normal tax. Lots of options for Democrats to consider to muster additional monies for Big Government. I am the director of my employees 401k plan. Each year I discuss new options with my financial institution regarding all future investment options. Then, a representative holds a meeting with my employees and myself to review the findings. Recently, we discussed the Presidential election in my office and how it could affect our plans. Two weeks later Obama is talking about the taxing of savings as predicted in my office meeting. I have one Obama supporter in my office. When I return to work on Tuesday, I wonder how they will respond now......

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