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Sunday, November 9, 2008

Liberty Maven on IRA Confiscation plan

Liberty Maven has posted a new item, 'Will IRA confiscation plan cause a run on
distributions?'

It seems the new Obama administration along with a Democratic majority in
Congress will try to one up the Bush administration's effort at socializing the
United States financial sector. We reported earlier of the testimony in
Congress from Theresa Ghilarducci who is advocating confiscating 401K's and
Individual Retirement Accounts and turning the management of them over to the
Social Security Administration. I have to believe most Americans would not
approve of such an action, but then again, most Americans didn't approve of the
recent bailout bill either.

Just about any new regulatory law comes with unintended consequences. Even
though this "confiscation" will be painted with a positive brush by those in
government when/if it shows up within a bill being debated in Congress, one has
to wonder if it will "scare" those of us who lack any trust in the government
into taking early IRA distributions where possible. I would guess there may be
a run on such distributions even with the high penalty imposed on early
withdrawals. It is unclear if such withdrawals would be widespread enough to
constitute a "run" on them, but the potential is certainly there.

You may view the latest post at
http://libertymaven.com/2008/11/09/will-ira-confiscation-plan-cause-a-run-on-distributions/3146/

You received this e-mail because you asked to be notified when new updates are
posted.
Best regards,
Marc Gallagher
mg@libertymaven.com



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