Q: I just saw a short article in your blog (12/29/10) that contains a reference to Congress getting its hands not only on TSP funds, but private-sector retirement accounts as well. I have seen articles already that discussed lawmakers raiding the TSP, but this is the first reference I have seen to them stealing non-government retirement accounts. However, there is little detail given. Can you provide more information on this issue, i.e., what is the source, status, etc.?
A: I’m not a political reporter, and don’t spend much time tracking proposals of this kind. I have read a few stories over recent months about a proposal to mandate the conversion of retirement fund assets into one or another variety of government security or annuity. As far as I know, these are just the pipe dreams of a few socialists and are not an imminent threat to your retirement plans. Just imagine the outrage that would ensue if this kind of thing ever began to gain any traction in Congress! It would make the health care reform debate look like a tea party. While anything is possible, that doesn’t mean that everything is probable. I can’t afford to spend my time researching every crackpot idea that floats around in the ether. If you want to focus on this issue, you’ll need to do your own research. You might want to start with an internet search on “idiotic idea to confiscate retirement plan assets.”
1 Comment
This is absolute rubbish. The”socialists”are not coming for our IRAs and 401ks. This non-story has its genesis on various extreme rightvwing blogs when some DC think tank proposed the idea of creating a national annuity funded through wage withholdings. The idea didn’t go anywhere.