Attaway Liberal Democrats!!
In the face of a bear market and recessionary economy, let's elimate the primary vehicle for retirement savings.
Under their proposal, all will be forced to contribute 5% of pay into government bonds paying 3%.
Thats a suitable investment for, say, an 80 year old. The 401(k) provision which allows choice in deferrals will be eliminated. Employer match, also, would be ancient history.
What a wonderful way to:
1. Ensure the loss of tens of thousands of jobs in the 401(k) industry
2. Ensure that, as a society, we are even less prepared for retirement
3. Redirect funds that are flowing into the equity markets instead into T-Bonds
4. Harm low-income workers by taking away employer matching funds
5. Eliminate a key benefit from nearly every employer in the U.S.
Its frightening what will occur when Obama, Pelosi, and Reid get together in a room and formulate their new world order.
House Democrats contemplate abolishing 401(k) tax breaks - InvestmentNews