Retirement funds, particularly 401K's, are at risk. As previously mentioned in the article Democrats Discuss Taking Over People's 401K's Democrats are looking to eliminate the tax break for 401K's and to subsidize a takeover of these savings plans. Investment New reports in their article House Democrats contemplate abolishing 401(k) tax breaks point out the problems with this plan.
"From where I sit that's just crazy," said John Belluardo, president of Stewardship Financial Services Inc. in Tarrytown, N.Y. "A lot of people contribute to their 401(k)s because of the match of the employer," he said. Mr. Belluardo's firm does not manage assets directly.
Higher-income employers provide matching funds to employee plans so that they can qualify for tax benefits for their own defined contribution plans, he said.
"If the tax deferral goes away, the employers have no reason to do the matches, which primarily help people in the lower income brackets," Mr. Belluardo said.
US News and World Report has also written articles on Democrats plans to target 401K's and retirement plans if they obtain control of the presidency and congress...
Why Democrats Will Target the Investor Class in 2009
Hat Tip other bloggers covering this issue...
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