Teresa Ghilarducci: The 401(k) Retirement System Has Failed

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If our Democratic (pronounced Socialist) administration (both Executive and Legislative bodies) attempt to tax our 401k plans before distributions are taken, I would suggest that before they do so, we cash out and invest in Swiss Francs or Euros and pay whatever one-time tax is due. Admittedly, it would be a big chunk of our investment, but it would clearly demonstrate to the administration and Congress that there is no confidence in their ability to provide for the common good and defend our hard-earned retirement plans.

Seymour Broad of OH 12:17PM February 16, 2009

Wow! Ever hear of risk reward. People who invest in a 401k should be aware of the risks and adjust acordingly. I would much prefer that over ANY government option.

Sean of TX 11:36PM February 02, 2009

So your going to tax more of my money and 'save' it for me?
Where is all the money you stole from me for my Social Security taxes. It's already gone!
If you steal more money from me with a new GRA tax, the same thing will happen. Congress will raid the fund and nothing will be left.
You are liars, thieves and cheats.
How can you live with yourselves?
End it!

Hagablaga of CA 5:12PM February 02, 2009

Remember back when Bush 1 was president. We had all these highly skilled people telling us to give up your defined pension plans as this would help the corporations and you could put all you money into the 401k ponzi plans. Wan not called that back then.
Now that Iam retired my defined pension plan was terminated so we could start the 401k.
Now my 401k had gone down in value by 65%, thus far.
So I can not expect much from it. Now all I hear from the republicans is tax cuts give more money back to the rich and too hell with the working class.
And forget about CD's they only pat about 00.65%. The cost of living is way about that.
Dont forget the bonus for the hedge fund and bankers. Americans have seen their better days.
The experts have no answer for this.

Ben of MO 12:05PM January 31, 2009

We do have to remember that 401(k) was a Congressional ACCIDENT in terms of becoming the pension substitute by default. That's why it never had a NAME, just a section number.
This thing was slipped into law in 1978 as a potential tax dodge for upper-middle-class people back when overall taxation was higher.
I agree we need to governmentally address pensions, this time ON PURPOSE AND WITH OUTCOME IN MIND.

Muser of NM 4:21PM January 30, 2009