Sep 07
In this past weekend’s radio address, President Obama talked about new initiatives for retirement savings. Allow me to summarize, and then offer my comments;
- Allow small businesses to automatically enroll workers in 401(k) plans.
- Offer an option to receive your tax refund as a saving bond.
- Allow employees to put payments for unused sick or vacation time into their 401(k) account.
- IRS and Treasury to offer a guide to inform people how to rollover their accounts when changing employers.
I’m sorry to say, I see nothing here of value. What will put more money in our pockets or help stabilize the financial markets? The third list item only impacts a worker changing jobs, and at time when they are most likely to need the cash. Note – this is not the worker’s 401(k) money, just the pay for unused vacation and /or sick time. I have higher hopes to see changes that will actually have an impact.
Joe
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September 7th, 2009 at 10:58 am
Call me paranoid, but this push seems like a way to prop up the stock market or to provide the state with more tax revenue in the future. Some conspiracy theorists would even be tempted to say that it’s a prelude to the confiscation of the funds in 401k accounts…
September 7th, 2009 at 1:24 pm
Paranoid? I trust no one. I’d like to think such things won’t happen, but I’d never say never.