President Obama recently released his 2014 budget and, of course, everyone focused on the aspect of spending. In fact, it was almost like the magician who diverts your attention to their right hand while the trick is being set-up with their left hand.
Much to the credit of the mainstream media, they found the little item — capping IRAs — on page-18 of the budget, which is a very good source of revenue with an estimated $9 billion over the next decade.
Yet, unfortunately, the media has once again missed the important point. It’s not just IRAs, but also 401Ks, Roth IRAs, and perhaps even deferred compensation, municipal bonds, insurance policies, and annuities that will all be affected as evidenced by this excerpt from Obama’s budget: “Limit an individual’s total balance across tax-preferred accounts.” This statement is so broad that it fully opens the door for governmental interpretation.
The mass media also focused on the fact that the cap was $3 million. Yet, once again, this is not exactly the case. The actual budget declares to “limit an individual’s total balance.....to an amount sufficient to finance an annuity of not more than $205,000 per year.” Given the current artificially….To Read More….
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