The Next "Crisis" the Global Elite Have Planned
Uncle Sam may turn into a “retirement robber baron” if Congressional Democrats get their way.
The most relevant part of that outline for retirement savers was particularly alarming because it aims to close a “backdoor” Roth strategy for high-income earners (at first):
This blatant cash grab circumvents a retirement saving vehicle for people who earn more income than the standard IRS income limits of $140,000 for individuals and $208,000 for married joint filers.
That vehicle is known as a Mega Backdoor Roth IRA conversion. Its main benefit pretty much speaks for itself:
Keep in mind that just because this proposed “cash grab” sets its limits to those savers that earn more than $400-450,000 now, doesn’t mean that limit couldn’t get ratcheted down at a later time. Or just anytime Congress needs another few billion dollars to build a bridge to nowhere.
Especially if tax-and-spend Democrats maintain their current political power beyond 2024.
There’s another part of this bill that casts vastly longer and more disturbing shadows…
Remember the Patriot Act of 2001? That compendium of new laws was initially passed under the guise of “keeping people safe from terrorism.” Later it was secretly expanded by the NSA vastly beyond its initial scope as revealed by Snowden’s 2013 revelations. As a part of the Patriot Act, banks are required to keep an eye on your account and report “suspicious” behavior.
Well, the initial Biden Tax Hike Bill included a very strange clause. The Wall Street Journal reported on this, and here’s a brief summary:
All financial institutions would be required to report on funds transferred into and out of all business and personal accounts (bank, loan and investment accounts) if total fund flows were greater than $600/year, or if the account held at least $600.
Politifact put this together nicely:
What’s this all about? Well, the Treasury department claims it’s to help the IRS detect tax cheats, and the focus is on “higher earners who do not fully report their tax liabilities.”
If that was true, doesn’t $600 seem like an awfully low number? (I don’t know about you, but I spend more than that every month on groceries.) Basically this is an attempt to secure data on virtually every American’s financial transactions, and to co-opt banks and brokerage firms further into the effort.
And who stands to be punished most harshly by this legislation? Those who’ve been most successful in their retirement savings.
Here’s another extract from the leg
Here’s another tidbit extracted from the House Ways and Means Committee summary of this proposal:
If your portfolio met those qualifications, you would be forced to take a 50% minimum distribution on any amount over $10 million, then pay taxes on that distribution.
That $10 million ceiling sounds generous. But keep in mind, that’s a completely arbitrary limit could also be ratcheted down at any time in the future.
If it’s one thing we can expect from our Congress, it’s the willingness to “redistribute” our wealth for their own political ends.
The bottom line: It looks like the Democratic-majority Congress have big plans for your retirement savings.
So what can we do about it?
How to ruin their plans for your retirement
Even though this attempted meddling with your retirement would make minor changes to Self-Directed IRAs, according to the Sovereign Man team, that is still a solid vehicle to consider for your retirement dollars:
The asterisk marks the main category of investments that would need to change if this legislation passes in its current form.
Self-directed retirement plans allow diversifying your savings into physical precious metals like gold and silver in addition to the universe of stocks, bonds, mutual funds and ETFs. Although physical precious metals, safely stored in a depository vault, seem to be a more challenging asset for an over-zealous government to seize compared to paper and digital assets.
Furthermore, physical precious metals stand up well against inflation, even nosebleed-high inflation. Precious metals are the go-to asset for Americans who consider themselves to be more prudent stewards of their savings than grasping politicians who’d use your life savings to fund a “Green New Deal.”
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