Economics Politics Uncategorized

Will 401(k)’s Disappear in the Interest of Fairness?

Professor Jacobson quoting a [Breitbart]( story on his Legal Insurrection blog:

> The budget President Barack Obama will submit on April 10 will contain a proposal that would prohibit individuals from accumulating more than $3 million in Individual Retirement Accounts (IRAs) and tax-preferred retirement accounts.

> According to a White House statement, the Obama administration believes the current rules allow some wealthy individuals “to accumulate many millions of dollars in these accounts, substantially more than is needed to fund reasonable levels of retirement saving.”

> “The budget would limit an individual’s total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million in 2013,” the statement said. “This proposal would raise $9 billion over 10 years.”

Outrageous and scary[^fn1]. First came the government calls as to what we can and cannot get for health insurance, now come the government calls for how much we are allowed to put away for retirement. Here’s hoping that the GOP can hold onto the house next year to keep the Democrats from actually being able to implement things like this.

[^fn1]: Not Cyprus level scary, since they are not trying to take money that people have already put away for retirement. Yet.