I bet the day comes when if your 401k is worth too much you lose SS!

[KansasVoter]

I am getting a sense that that is an option on the table. I hope I am wrong but i think it is coming.

[rucky]

1. What if it is worth too much one day, then not so much the next?

[dmallind]

14. if it does that to a significant degree anywhere close to retirement

Then the holder is an idiot who has not listened to the most basic investment advice, universally agreed upon and splattered liberally all over the mass media for the last few decades - reduce exposure to equities and risk as you near retirement.

Unless you suspect a collapse of the bond market, which the rates on long term instruments do not suggest.

[dionysus]

2. honest question... do you just imagine the worst thing possible off the top of your head,

and assume that's what obama is going to do?

[DJ13]

6. Thats right more often than wrong, so why not?

[HereSince1628]

3. I think it's more likely that the day will come when you must MATCH

SS dollar for dollar in order to be eligible to participate.

The Sith lords want to be able to sell worthless stocks
The wall st bastaads want to be involved in the transactions so that they can pilfer as middle men.

Any money held outside of that system of piratization is money that the Sith and their minions are denied. Kapitalizm cannot spread its benefits throughout the galaxy if it is not fed money.

[gratuitous]

4. Which means . . .

That social security, rather than an insurance trust benefiting everyone, becomes an entitlement only for the wrong kind of people, people who made poor choices in life not to be investment bankers or industry executives. And when green-visored legislators are looking for places to cut the federal budget, it's always easiest to cut the "entitlements" that none of them or any of their friends need than to look at fat military contracts or cost-plus corporate welfare handouts.

[Democrats_win]

5. Hey, someone has to pay for the mistakes of the bush pResidency.

If the filthy rich refuse to pay, guess who's next in line? The working class with their 401ks sticking out! It's not right that the people who benefited enormously from the failed bush presidency aren't paying for it. Worse, the working class and the poor WILL be paying for it. Obama guaranteed that with his Rotten Deal tax compromise.

[Kayla2010]

7. We always pay. Has there ever been a time in our history

when we didn't?

[FiveGoodMen]

8. No sense blaming this on Bush anymore.

[zipplewrath]

9. Shakey presumption

There is significant talk going on in various governmental circles about modifying the whole 401K system to begin with. Many ideas being thrown around, including caps on the amount of earnings exempt from taxation, to incorporating 401K cash into the SS system. Of course some folks want to change SS to basically be part of your 401K.

[Lucky 13]

10. No, this would just take money away from the rich. We prefer to make the rich richer.

So whatever cuts that occur would have to allow the rich to collect their pocket change monthly.

[mimitabby]

11. no, i don't think so. that would hurt the rich

maybe you would be penalized if you had a 401k worth less than $50k, but if it was $500,000 or more you would get double SS benefits...

[kenny blankenship]

12. And then when you all lose your 401ks there won't be any Social Security

coming << -they got ya- >> going.

[FreeJoe]

13. It started years ago

SS income used to be untaxed. Now up to 85% of SS income is subject to an income tax if you earn above a certain amount. Honestly, I think 100% should be for everyone.

Beyond that, will the reduce benefits based on income or net worth? Maybe. I'd rather see that than having benefits cut for people with low means. The problem, of course, is that it disincentives people from saving. I'm not sure what the right balance is, but I'm not going to get my panties in a wad because someone somewhere theorizes that we might in some way means test social security benefits.

[jwirr]

15. If the does not happen and they continue to privatize these programs

won't that be a form of double dipping? I do not quite understand how that would work.

[cbdo2007]

16. Can't happen - everyone at DU already think 401ks are worthless.

Therefore they can't possibly gain value and be worth anything.

[Lyric]

17. I think it's far more likely to be the opposite--if your 401k is worth too LITTLE you lose SS.

And I'm being serious. I honestly foresee a piece of legislation titled something like "The Retirement Security and Responsibility Act of 2020" in which people are given perks (earlier retirement age, lower Medicare premiums, whatever) for having fat 401ks, and penalized (lower SS payments, higher premiums, etc.) for NOT having enough "private" retirement funds saved up. Because, you know, that's "irresponsible". Nevermind the fact that 99% of low-income people can't afford to save a 6-month "rainy day" fund, much less for retirement. But hey, if there's a way to reward the rich and punish the poor while waving the flag of "personal responsibility", the right-wing WILL find it.