Your 401K or IRA will soon be seized by the government!

Planning a nice retirement by funding your 401K or IRA with pre-tax dollars? Enjoying the nice employer match? At this point, kiss any hope that you’ll have that money at retirement goodbye. The government is going to take it away from you, sure as the sun rises in the east and sets in the west. Oh, they may not simply confiscate the money, but they will take it. There are several ways they can do this, assuming it’s not destroyed by rampant inflation or the collapse of the currency or the collapse of the stock market. All of those are things that are built into current monetary policy and can’t be avoided.

There are several ways they can seize your retirement funds that don’t involve simple confiscation, and they are all interrelated. Remember, this is pre-tax income and taxes are applied at your rate when the withdrawals are made. So, all they have to do is raise the tax on 401K or IRA distributions. Second, as Social Security becomes more and more untenable and tax increases become impossible, they will ask the ‘rich’ to ‘pay their fair share’ by reducing your Social Security by the amount of your withdrawals (mandatory once you reach age 70.5). Then, as inflation rises, the social security payouts are increased to match inflation (but your private funds do not increase), thus taking an ever larger share of your retirement payout away from you. Eventually, the taxes on  the “excess distributions” (that is, over and above Social Security) will rise to a point where very little, if any of the value you planned to have will be there.

Don’t think this can happen? The Democrats threw their base under the bus by allowing the payroll tax reduction to expire, hurting the poor and middle class badly. Why? To protect Social Security. This is their touchstone program that will never be cut, never be reduced and payments will never be missed. No matter what. And the demagoguing about how the “rich” are not paying their fair share will only get worse, but this time ‘rich’ will be applied to anyone with private retirement funds. And eventually means-testing will be expanded to include all assets, not just 401k or IRA distributions. After all, we can’t let the ‘rich’ have a comfortable retirement while the ‘poor’ do not. Look up ‘kulak‘ for an idea of what I’m talking about.

Mark my words. This will happen. There is no avoiding it. And the masses who don’t have IRAs or 401Ks will demand it. Of course, the union pensions (or what’s left of them after rampant inflation) won’t be touched. I think you can take that to the bank. Assuming there are any banks left after the fiat currency collapses. Or the stock market bubble being built by Quantitative Easing and Zero Interest Rate Policy bursts and takes your investments to a fraction of their current value.

Bottom line, it’s very likely you won’t see a dime of the money you are saving now. And until we stop printing money via Quantitative Easing and raise interest rates and cut government spending, there is no chance of changing this course. None.

Think this is crazy talk? Read this report of an interview from the new Consumer Financial Protection Bureau. Trust me, this ‘help’ is only the first step. And it’s not new—this was proposed in 2008 by the Democratic Congress

See more on this topic: More Evidence of the Coming Wealth Confiscation. Also see the related post: Why They Are Coming For Your Guns.

About Stephen Adams

The founder of this site, he has a Bachelor of Science degree in history from Elmhurst College. He is an IT Director that has worked for several major global companies. He has studied the Constitution and Founding Fathers extensively and his hobby is Constitutional Law. He blogs under the “Founder’s Blog”.