Why Baby Boomers Better Start Withdrawing IRS's 401K's Before Age 71 1/2
We are 17 trillion in debt. The government will do everything at its desposal to make ends meet. You will be at risk, maybe not a Cypress bail-in, but at risk for losing more than later than taking it out now. Baby boomers were sold years ago on tne adage that if you contribute pre-tax dollars now, when your marginal income tax rate is high, you can take it out after 59 1/2 when you are at a lower income tax bracket nd pay less.
Who says Congress, in sharing the wealth" won't raise your marginal tax ratee to say 33%
You're saying why give up the capital gains that are accruing tax free and take out money from your retirement account and pay tax on it now?
I meant IRA's not IRS's in subject line of my last post.
My wife and I are sweeping our IRA account dividends every month into our checking account. We get a 1099-R at the end of the year from Fidelity and have to report the withdrawals as ordinary income. We are in the 25% marginal income tax bracket. We at least know that those dividends will not be at risk of government confiscation or government nationalization of people's retirement plans.
Just because something like that has never happened before, doesn't mean it will never happen.
This borrowing is going to end very badly for everyone. Plus, who is to say the markets won't crash again when the news hits the streets that Congress is even slighly considering nationalizing the nation's retirement plans "For the Good of All"