Our Blog

Stay Away from My 401(k)

It is no secret that our countries federal deficit is quite steep, but is retirement savings the correct place to...

It is no secret that our countries federal deficit is quite steep, but is retirement savings the correct place to look for money to reduce this problem?  

Currently, Congress is strongly considering removing all or part of the tax incentives, including pre-tax contributions, for 401(k) plans.  This is viewed as a method to increase federal tax income, based on the current budget scoring system. 

The last time Congress considered tax reform in 1986 it cut the 401(k) contribution limit by 70%, which had a devastating impact on the ability of American workers to save for retirement.

Brian Graff, Executive Director and CEO of the American Society of Pension Professionals & Actuaries explains that this search for funding is “a lust for revenue.”  The main worry is that retirement is already tough enough to plan for and that the governments plan for tax reform to existing 401(k) plans will only make this process more difficult for Americans.  As negotiations continue in Washington, there is a strong urge for the general public to make their voices heard and take action to prevent this from happening again.

Many members of Congress are unaware of the critical impact their actions may have on American investors and our industry.  Stats from a 2012 survey claimed, “employers would be less willing to sponsor 401(k) retirement plans if Congress alters the existing tax treatment.”  We can help educate them about issues just like this, especially if we do so in large numbers and in a united way.

There are campaigns already created with the sole purpose to educate Congress and get the general public’s voice heard. Graff’s and the National Association of Plan Advisors (NAPA) launched the “Save My 401k” campaign, an initiative put in place to get large populations of people to email his or her respective member of Congress with the simple message…”Stay Away from My 401(k)!”


Photo courtesy of: www.thousandaire.com


DISCLOSURE: Investment advisory services are offered through Gretchen Stangier, Inc. DBA Stangier Wealth Management (“Stangier Wealth Management”), an investment advisor registered with the U.S. Securities and Exchange Commission. Stangier Wealth Management only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided copies of the firm’s ADV Part 2A brochure and Part 3 documents.

DISCLAIMER: This website is for informational purposes only and does not constitute a complete description of our investment services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY ‘LINKED’ WEBSITE.

You may also like

401k UPDATE: November to Bring Critical Turning Point

November often acts as a transition into many things: the holiday season, end of the year preparations, and winter’s arrival.  …

Retirement Planning: A Recipe For Success

Planning your investments to build a retirement fund can be a dizzying prospect. The various questions and options and details…

The Economics of Borrowing from Your 401(k)

When times are tough, that pool of dollars sitting in your 401(k) plan account may start to look attractive. But…