Republicans are putting the single most popular retirement plan in the country on the chopping block, hoping to re-slice and dice it to better suit their spending plans.
Now, according to some financial ex-spurts, this is impossible.
Roth IRAs and life insurance and a whole bunch of other non-qualified plans are supposed to be killed off before anything happens to the sacred cow.
Nyet, comrade.
Governments don’t think long term. Politicians don’t think long term. They think in terms of election cycles.
They also like low hanging fruit.
And retirement plans are so low-hanging.
About as low as it gets considering the legal framework they exist in.
Also… since 401(k)s and IRAs are tax favors (exceptions to income tax requirements), they can be easily changed or regulated differently through agency (IRS) rule changes or changes to the law itself.
Example: if Congress can’t get its changes pushed through, they have other options like… direct the IRS to enforce existing laws and regulations. Since most retirement plans are out of compliance with the tax laws, it would be a simple chop and mop job.
To be fair, no one knows where this will go. Trump seems determined to not touch retirement plans.
Congress seems determined to make it harder for Trump to get what he wants.
Years ago, no one thought Obamacare would pass so… it’s really anybody’s guess.
Of course, those who did nothing to prepare for the healthcare changes got majorly shafted.
Moving on.
If you want to untangle yourself from the whims of politicians, check out my life insurance planning services.
Life insurance, being a private contract, cannot be changed by an act of Congress without unraveling contract law itself and the entire legal structure (the one they depend on for their own job).
Anyway, if you want more info on how to protect yourself, join my email list now.