Obama Wants to Tax Your Retirement Accounts

[NickJ]

NEW YORK – Since 2010, WND has been reporting President Obama’s intent to extract more money from personal retirement accounts.

Now, Rush Limbaugh has expressed his concern, citing President Obama’s recently proposed fiscal year 2016 budget as proof Democrats have a plan to tax retirement accounts as a means of funding the administration’s ever-expanding social welfare, including to millions of illegal aliens granted amnesty by executive action.

http://www.wnd.com/2015/02/obama-wants- ... -accounts/

This would be an even bigger broken promise. Social security accounts are not investment accounts despite appearing to the contrary. It is an entitlement. What's going on in this country?

[Kane]

Shitty article is shitty.

[Mr. Shaman]

[Mr. Shaman]

[Winchester]

Meh, It looks like it will just get rid of the "back door ROTH IRA" loophole which only affects marrieds making more than $181,000 or Singles making more than $114,000. Basically these people are ineligible to make a ROTH IRA contribution... but they can still make a non-deductible traditional IRA which they then convert to a ROTH and since they didn't get a deduction for the traditional IRA contribution it's basically a tax free conversion. They then get all the benefits of a ROTH meaning it grows tax free, distributions are tax free and they are not subject to the minimum distribution rules that other retirement accounts are subject to. Hell of a vehicle to pass wealth to the next generation.

The other thing is they will make ROTHs subject to the minimum distribution rules which basically are geared to get money out of retirement accounts before one dies. It would also limit the amount of time one can enjoy the tax free growth in the accounts.

Honestly the proposals make sense. If there are limits to who can contribute to a ROTH then there ought not be a back door way to bypass those limits. Nor should a retirement account meant to provide income during one's retirement years be used primarily as a vehicle to accumulate wealth to pass on to the next generation (continuing to benefit from tax free growth all the while).

[Indy]

First source: WND. Second source: Rush Limbaugh.

Third source: *already out the door by this point...*

[Winchester]