Money and Success

Your Money Show

Brett Goldstein

Your Money Show – The Death Of 401ks

Yourmoneyshow.com  talked about the Death of 401ks.  Congress might be ready to slash your retirement savings. In a time of deficit reduction, the government is looking at every possibility to make money. The Government supposedly lost $143 billion in 2010, due to the tax deductions for 401ks and other tax breaks.

One idea that has been floating around for awhile is limiting 401k contributions. Now  President Obama wants to limit the amount of money you can accumulate in a retirement plan to $3.4 million.  The President’s 2016 Budget Proposal also called for the elimination of the Stretch IRA and a new rule which will allow anyone who works at least 10 hours per week to participate in a 401k.

Why does it seem that every President seems to be going after 401ks and IRAs? President Bush tried to kill the 401k by proposing a plan called the ERSA. Now President Obama wants to limit the amount of money saved in a retirement plan. You would think that if more people saved money in their retirement plan, you could get people off Social Security.

Is this just another bunch of hype? Would it lead to the death of 401ks? Brian Graff, executive director and chief executive officer of the American Society of Pension Professionals and Actuaries, said in an emailed statement to Bloomberg Business week, “It is a ‘plan killer. “As business owners reach the cap, they will lose their incentive to maintain a plan, and either shut down the plan or greatly reduce benefits. This would leave workers with a greatly diminished plan or without any plan at all.”

In an article that first appeared in AmericanThinker.com, would the Government really raid 401ks?

 

The answer was, “Those who believe our government is too honorable to raid private retirement accounts had better wake up! The seriously dangerous and wounded animal we know as government is fighting for its survival. It will do anything short of dying, reducing spending, or revealing itself as the Ponzi scheme it truly is.”

Whether the Government limits your 401k contribution or mandates that you invest in Treasuries, AmericanThinker.com answered the question “Why Will Your 401k Be Raided” by quoting famed bank robber Willie Sutton who said, “That is where the money is.”

You can sign the petition asking Congress to keep their hands off your retirement nest egg.  Go to The Pension Department Inc’s website and sign the petition.

Your Money Show also talked about Do Small Business Owners Need “A Human Resources Department. The simple answer is…because you have people working for you.

Like children, employees will test the limits and boundaries to see what they can and can’t get away with. Some will take long lunches, while others will come in late or leave early. In the workplace, you need a strategy for developing, communicating and enforcing a set of policies and practices that reflect your standards of acceptable behavior. A successful written set of policies does more than draw boundaries and stay compliant to avoid fines. A written set of policies is about improving performance, setting expectations, and having employees meet those expectations.

The focus is not only about meeting those performance goals, but how those goals are met. The performance goals set, must also comply with Federal and State laws like HIPPA, COBRA, FMLA, GINA, NY State Wage Theft Prevention Act, and other laws. To accomplish this, you must have certain tools available.