Something Wicked This Way Comes…Obama Planning Retirement Plan Bail-ins

HindenburgBy AGXIIK:

Obama is on a tear about the ‘size’ of IRA balances.  He says that Americans should not have IRAs beyond a certain limitThese limits would be imposed through changed in the tax codes to impose FAIRNESS in IRA matters.
HERE IS MY PREDICTION:  
Obama will propose bank bail-ins that incorporate a progressive pension plan expropriation based on retirement plan size and income streams.  It will start with the biggest plans, many sitting in offshore accounts.  These mega plans will suffer a large haircut, perhaps starting with 20% and progressing upwards to 50%, depending on how one acquired the wealth or how well connected one is.
Like the well-connected in Cyprus, those who know the haircut is coming can execute plans to remove their IRAs from government seizure.  Those who are not forewarned to this theft will wake up to find their $500,000 IRA  has been halved.
Cue the Hindenburg.

 

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Over on ZH is a recent Duran-ity that’s helps me gel the way the gummint will dig into our pensions.  I call it the bastard stepchild of Cyprus haircuts and the Ghilladuci GRA.  Obama is on a tear about the ‘size’ of IRA balances.  He says that Americans should not have IRAs beyond a certain limitThese limits would be imposed through changed in the tax codes to impose FAIRNESS in IRA matters.
He uses Romney’s $100,000,000 offshore IRA holdings developed by the increases in Bain Capital shares.  Opining that this is excessive, he that provided some talking points as to limits on IRA sizes.

This coming from a man who will have pension provisions and other perks that would easily top $1,000,000 a year not to mention the Obama library that would probably cover the better part of Kauai (sorry Hapa) and speaking engagement at $500,000 a pop, this is makes the word hypocritical seem tame.

HERE IS MY PREDICTION:   (Cue Ruffles and flourishes)
Obama will propose bank bail-ins that incorporate a progressive pension plan expropriation based on retirement plan size and income streams.  It will start with the biggest plans, many sitting in offshore accounts.  These mega plans will suffer a large haircut, perhaps starting with 20% and progressing upwards to 50%, depending on how one acquired the wealth or how well connected one is.   Remember those connected Cypriot bank account holders who got ample warning to remove their capital before the shut down 3 weeks ago.
Those who know the haircut is coming can execute plans to remove their IRAs from government seizure.  Those who were not aware or forewarned to this theft will wake up to find their $500,000 IRA  has been halvedIn Cyprus UK ex-pats had plans in the high 6 figures, representing a life time of savings.  They now have less by 40% or more and their plans are still in lock-down mode.

Once this plan has been fully implemented, the score settling against the less wealthy will commence. Those with plans ranging from $500,000 to $100,000 will see their IRA balances shaved, perhaps less than 40% but certainly in the 20% rangeThese plans have the misfortune of being held within in-extractable company retirement funds or if personally managed, will find  tax costs that could easily hit the 40% bracket plus penalties if the holders try to remove themselves from harm’s way.  A 20% haircut would seem small by comparison.

Damned if you do; damned if you don’t, the escape clause is either tax the tax hit and put the remaining balance out of the danger zone,  or remain in place and see your IRA at ground zero of the government’s plan to use your hard earned savings to build an Erewhon of Populist Fairness for those less fortunate.   Oh the humanity. 

Cue the Hindenburg.

 

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Comments

  1. “Obama is on a tear about the size of IRA balances”.  Haven’t seen this.  Can I get some links about these “tears”?  Seems like I’m not seeing these videos or speeches anywhere.

  2. Nice… not a single fact in the entire fear mongering piece.
    The uber rich have been using (abusing) retirement plans as domestic “offshore tax havens” since inception, and this is a responsible move. Anyone who can afford to max out every year does not need a retirement plan to ensure a self sufficient (as in no extra burden on the social safety net) retirement… the purpose of these plans.
    And, Washington is not after your money… Wall Street is, and Washington is simply a speed bump on the way!

    • Wasgington is bought and paid for by Wall Street, they need DC to make the laws to rip every piece of possible wealth away from US citizens.

  3. Come on Ag12K, don’t you think we should give tyranny a chance.  Let’s all move to Erewhon and elect Teresa Ghilarducci our Economic Czar. Life would be so incredibly dystopic.

  4. Maybe if the rich start seeing their wealth stolen something will be done.  God knows the rest of us have no voice.

  5. I would rather buy a Mickey Mantle or Ted Williams RC than contribute to a retirement fund.  

  6. I don’t have a Retirement Fund or IRA anymore thank God for that but I do have my Social Security which will be on their Radar. Keep Stacking

  7. Maybe SRV wants to live there. 
    Fact. Last week Obama made specific reference to limitations on IRA sizes.  Fact, Spain took 97% of the Sp pension funds to buy Sp bonds, rated somewhere around CCC Minus.  
    Fact   Cypriot pensions over 100 Euros were given an immediate 40% haircut.  Some UK ex pats, after a lifetime of savings, saw hundreds of thousands of Euros in their balances, taken to bail out the banks. 

    As a point of reference, after reviewing thousands of pages of articles and posting exhaustively about these things, including the Senate law passed around 2008 that  allows the government to force private pensions to invest in government bonds and billions in Federal pensions now forced into US treasuries, it is clear that this is the way of the future.
    SRV— maybe you are comfortable with the government taking a lifetime of your own retirement to balance their books.  I am not so comfortable placing my life time of pension funds in harm’s way.  I exited the traditional IRA system a year ago and am All In with my IRA and that of my wife in gold and silver.  In light of that I say in the most simple terms. 
    Molon Labe, to you and anyone who wants to take it.
    My personal thoughts are that No confiscation on my watch if I have anything to say about it. And the post above is just that. My statement of how things could evolve. I hope I’m wrong but think I am not

    • “Fact. Last week Obama made specific reference to limitations on IRA sizes.”
       
      Apparently, he did.  But that could be argued to be something that, if passed into law, only governs future IRAs and not current ones.  The plan that the Obamunists are hatching on this is completely unclear, as usual, so we don’t really know what they intend or what part of it they can actually get through congress.  The House is currently working well as a blocking force to additional stupidity but if that changes in 2014, THAT will be the time to pull the plug… IMHO, anyway.
       
      As to the Cyprus template, it will not be seen here until AFTER it is seen in Italy, Spain, Portugal, Ireland, and the UK.  We all need to be watching the news from these places, hopefully via friends who are actually living there, to see if there is movement of this approach from there towards here.  It is entirely possible that there will be such movement but it is not, of course, guaranteed.  
       
      No, the plan to rob Americans will likely evolve differently, just as we have banksters robbing the US Treasury of $85B a month instead of directly robbing (ala Cyprus) US bank savings accounts.  We also have savings accounts being robbed slowly via near zero interest rates coupled with inflation nearing 10%. In that vein, a VAT will likely be proposed such that IRA money will be taxed, perhaps twice, once when taken out and once again when spent.  Roth accounts may only see the VAT part of this.  No, this is not confiscation, they will say, it is merely taxation.  Bottom line… expect the same s**t sandwich but not the same delivery method.
       

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