If you do, you may want to look into how you can protect it. Our new government wants to take away the tax deferral you get with them which will remove a substantial benefit you get from having one. In addition to that, removing the tax deferral will discourage employers from providing company match programs which primarily help those in the lower income brackets.
Instead of investing in 401K programs of your choice and reaping the benefits of your employer giving you matching funds, the Dems want to force every worker to contribute 5% of their pay to Social Security. They'll invest the money into government bonds that make 3%. Then, if Social Security has gone bankrupt by then, you'll get your money back.
Can you afford to lose 5% of your gross income
Sounds like a great retirement plan, doesn't it?
You'd be better off sticking your money under a mattress...except that you won't be able to because it will be deducted from your paycheck before you get it.
Here's a couple other articles on it:
House Democrats Contemplate Abolishing 401K Tax Breaks
Reid, Edwards, Pelosi & Obama Join Forces to Form R.E.P.O
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2 Comments:
Ah what if you don't pay into social security at your work? Many gov't employees do not.
Oh sure we'll get it back - yea right! Oh yea, this is going to be real helpful to the middle-class-NOT!
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