Saturday, April 20, 2013

The beginning of the end of the IRA is here

A couple of years ago I predicted that individual retirement accounts (IRAs) were ultimately doomed due to warped socialist ideas of "fairness." If the president's 2014 budget is approved as is, then the IRA's death scene has already begun. The budget includes an annuity-rate-dependent cap on the total savings in all of one's IRA accounts which assumes that an annual annuity payout of $205,000 is sufficient for all retirees.

As always, big things have small beginnings, and there's no doubt that if this IRA cap is passed, the "fair annual payout limit" - and therefore the limit on the amount of savings - will descend to lower and lower levels in subsequent budget years as the government scrounges for more money to pay the ever-increasing bloated federal budget.

These moves by the government are perfectly predictable if you think like a socialist.

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