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Retirement Advice from Barack

April 7, 2013


President Obama’s soon-to-be-unveiled budget includes sage counsel for upper-income citizens: You’re saving too much for retirement.

A senior administration official explains that some wealthy individuals (including Mitt Romney – yeah, they actually said that) are socking away millions of dollars in 401(k), SEP and other tax-sheltered accounts and this is…”substantially more than is needed to fund reasonable levels of retirement saving.”

Under this new proposal, tax-preferred accounts will be limited to a maximum balance that would provide $205,000 in withdrawals per retirement year.   (Where do they come up with these numbers?  It could just as well have been a flat $200,000, but flat numbers don’t sound quite as… scientific.).

But that’s not really the point, is it?   The point is that it’s good class warfare.

The administration says this measure will “…bring more fairness to the tax code,” while raising federal revenues by $900 million a year – about what the Federal government borrows every five hours.

That’s not a lot of money and it probably only affects about a thousand taxpayers, but it provides a nice precedent for the next round, when the administration decides that the real cash-cow – the middle class – already has too much money socked away and it’s time for the Feds to dip into your piggy bank.

It worked in Cyprus.

So don’t lie awake nights wondering how much you should be saving for your golden years.  Government will do that for you.

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