Thursday, June 23, 2005

Did You Know There's A Roth 401K Bill In The Works?

COUNTERCOLUMN: Dem congressman moves to strangle Roth 401(k)

Until I read Jason's posting I didn't even know this was in the works. This would be great if they could get it approved. Just think, you'd pay your taxes today and when you're set to retire --- no taxes on the Roth 401k contributions. This would be good especially for those of an age just starting out in the work force. Your tax rate is lower since you're earning power has not reached it's potential.

Alas, there's some Democrats who want to nix this in the bud (Aren't we shocked now!). Jason mentions some excellent points about Democrats and the influence of the Unions on retirement plans. Essentially, all retirement plans outside of a union -- VERY BAD. The unions would prefer to bankrupt all American Corporations instead of foregoing a corporate paid pension plan agreed to by the union thugs in charge. See, that's what is now happening to the different American airline companies and also to GM and probably soon to be Ford Motor. The pension plans forced on the companies through negociation (read: threat of strike) have burdened American companies for price competition globally. It's no different than Social Security and what will happen to younger workers who will have to support all the Baby Boomers when they retire. Social Security taxes will have to be raised or Social Security payouts or qualifiers will have to be lowered (or maybe both of these options will happen).

Something I never caught onto from the 90's that Jason mentions is President Clinton's refusal to increase 401k caps and also IRA Caps.

Go check out Jason's posting.


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