There are rumors of this on the "righty" blogs but recently my friend who also has a sizable 401K, mentioned. What is the chance of the US Gov. seizing the 401K and making this new Gov Retirement Program? Some bozo in senate or the house is pushing this, but as Uncle Sam getting poorer and poorer this will be tempting to both side of the isle as both are criminal. Further, is there a way to get my 401K out and convert it to some IRA? For reasons I do not wish to get into most of my money is in a 401K.....
They cannot seize that money. It is not a government pension fund. It is the 401k owner's money. They might eliminate the tax deferred advantage though and then, they could impose a mandatory retirement contribution, similar to social security, to replace the 401ks
just like they can't take the gold of citizens, because it's not the government's, right? (ahem) you're so naive.
The real question is when the seize it do you get credit for the full amount, or do they pool it all and redistribute it according to Marxist principles.
They might pool it all and redistribute it to the banks, the army, the DOE, DOJ.... distribute it amongst the citizens? lol.. what kool-aid are you drinking?!?
No. Of course you would get a credit for it, but you would lose total control...for some people it is the same as losing it, as they are "trading" a 401 K to some extent. Last night I have checked out my Merill Lynch account where the 401K is held and apparently I cannot take anything out until age 59 1/2. (then it will be too late (I am 52) I have done one thing; lowered my 10 percent contribution to 4% which is matched anyway by the company I work for.
ANY 401K can be "rolled" into an IRA, after you leave the employer. You can withdraw the money at any age with a 10% IRS penalty PLUS applicable tax on the principle.
Of course you can take out your 401k money any time you want, but you have to pay taxes that were deferred, and a penalty on top, if you are not at least 59 1/2.
I am not that naive. I actually read a good book that has an entire chapter about the [un]constitutionality of the gread gold robery, check it out: http://www.amazon.com/Who-Killed-Constitution-American-Liberty/dp/0307405753