# US Government Planning to Confiscate 401K/IRA Accounts? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [February 12, 2010, 2:11pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702 "2010-02-12T14:11:37Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![ralph124c](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@ralph124c](https://boards.straightdope.com/u/ralph124c)\ **Post date:** [February 12, 2010, 2:11pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/1 "2010-02-12T14:11:37Z")
Several financial writers have speculated that the US Government might try to rescue the dollar, by confiscating individual retirement accounts. The most common theory is that you would be forced to buy a government-backed annuity, in exchange for your IRA/401K assets. Has anyone heard anything about this? This would be unprecedented-but the $15 trillion now in IRAs must be tempting to Geithner. Of course, it would require a lot of skullduggery-could this happen? ---
**Author:** ![Gus\_Gusterson](https://avatars.discourse-cdn.com/v4/letter/g/85f322/32.png) [@Gus\_Gusterson](https://boards.straightdope.com/u/Gus_Gusterson)\ **Post date:** [February 12, 2010, 2:14pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/2 "2010-02-12T14:14:55Z")
Here is what [FactCheck.org](http://FactCheck.org) has to say: [http://www.factcheck.org/askfactcheck/are\_congressional\_democrats\_talking\_about\_confiscating\_ira.html](http://www.factcheck.org/askfactcheck/are_congressional_democrats_talking_about_confiscating_ira.html) If you want to save time by not reading it, the answer is “No”. ---
**Author:** ![Bijou\_Drains](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bijou_drains/32/2814_2.png) [@Bijou\_Drains](https://boards.straightdope.com/u/Bijou_Drains)\ **Post date:** [February 12, 2010, 2:16pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/3 "2010-02-12T14:16:14Z")
Let me guess, you heard this idea in an email? ---
**Author:** ![JohnT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnt/32/15048_2.png) [@JohnT](https://boards.straightdope.com/u/JohnT)\ **Post date:** [February 12, 2010, 2:24pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/4 "2010-02-12T14:24:57Z")
> [@ralph124c](#): > > Several financial writers have speculated that the US Government might try to rescue the dollar, by confiscating individual retirement accounts. The most common theory is that you would be forced to buy a government-backed annuity, in exchange for your IRA/401K assets. > Has anyone heard anything about this? > This would be unprecedented-but the $15 trillion now in IRAs must be tempting to Geithner. > Of course, it would require a lot of skullduggery-could this happen? How exactly would seizing $15 trillion in assets shore up the dollar? If anything, it would do the exact opposite as people lose their faith in the soundness of the American system. ---
**Author:** ![Harmonious\_Discord](https://avatars.discourse-cdn.com/v4/letter/h/74df32/32.png) [@Harmonious\_Discord](https://boards.straightdope.com/u/Harmonious_Discord)\ **Post date:** [February 12, 2010, 2:26pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/5 "2010-02-12T14:26:46Z")
This premise is hilarious. ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [February 12, 2010, 2:36pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/6 "2010-02-12T14:36:27Z")
In today’s headlines, right-wing blog spreads misinformation and fear. In other news, Generalissimo Francisco Franco is still dead. ---
**Author:** ![howye](https://avatars.discourse-cdn.com/v4/letter/h/a9adbd/32.png) [@howye](https://boards.straightdope.com/u/howye)\ **Post date:** [February 12, 2010, 3:06pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/7 "2010-02-12T15:06:06Z")
I am sure this is going to happen. It will be part of the same declaration setting up the white slavery camps and just before the portraits of Mao and Lenin are hung in every classroom. ---
**Author:** ![Kolga](https://avatars.discourse-cdn.com/v4/letter/k/e56c9b/32.png) [@Kolga](https://boards.straightdope.com/u/Kolga)\ **Post date:** [February 12, 2010, 3:08pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/8 "2010-02-12T15:08:29Z")
Do these “several financial writers” have names? ---
**Author:** ![2ply](https://avatars.discourse-cdn.com/v4/letter/2/b2d939/32.png) [@2ply](https://boards.straightdope.com/u/2ply)\ **Post date:** [February 12, 2010, 3:25pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/9 "2010-02-12T15:25:42Z")
No, no, you have it backwards. The government is going to continue to rob from **young** people to support the livestyles of older persons. ---
**Author:** ![Czarcasm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/czarcasm/32/4050_2.png) [@Czarcasm](https://boards.straightdope.com/u/Czarcasm)\ **Post date:** [February 12, 2010, 3:27pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/10 "2010-02-12T15:27:18Z")
> [@ralph124c](#): > > Several financial writers have speculated that the US Government might try to rescue the dollar, by confiscating individual retirement accounts. The most common theory is that you would be forced to buy a government-backed annuity, in exchange for your IRA/401K assets. > Has anyone heard anything about this? > This would be unprecedented-but the $15 trillion now in IRAs must be tempting to Geithner. > Of course, it would require a lot of skullduggery-could this happen? Cite? ---
**Author:** ![running\_coach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/running_coach/32/15836_2.png) [@running\_coach](https://boards.straightdope.com/u/running_coach)\ **Post date:** [February 12, 2010, 3:39pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/11 "2010-02-12T15:39:11Z")
> **[IRA & 401k Theft Plotted by US Government - SilverSeek.com](http://news.silverseek.com/GoldIsMoney/1263437229.php)** > > Since 1995, SilverSeek.com provides free silver news, commentaries, silver stock news, buying silver information and financial truth! [http://www.dailypaul.com/node/122635](http://www.dailypaul.com/node/122635) > **[Christian Retirement :: IRA Takeover; Is Congress Planning to Confiscate Yours?](https://christianretirement.com/newsblog.asp?action=ind&pub_id=18273)** > > Is the Federal Government planning a takeover of your retirement plan? > > This concept is currently under discussion by Democrats in the U.S. House.  This plan would confiscate all workers' personal retirement accounts --- including all 401(k)s and... [http://earlyretirementreport.com/retirement-planning/democrats-plan-to-confiscate-retirement-accounts-sends-panic-throughout-early-retirement-community/](http://earlyretirementreport.com/retirement-planning/democrats-plan-to-confiscate-retirement-accounts-sends-panic-throughout-early-retirement-community/) > **[Who Wants to Confiscate Your 401(k) and IRA? - Personal Liberty®](https://personalliberty.com/who-wants-to-confiscate-your-401k-and-ira/)** > > Congress is concerned that Americans' retirement funds have dropped by 40 percent to 60 percent during the economic meltdown and they are looking for ways to help. One way being considered is to confiscate your IRA or 401(k) and put it into a... > **[USA: Proposals to Confiscate Workers’ Personal Retirement Accounts - Global...](https://www.globalresearch.ca/usa-proposals-to-confiscate-workers-personal-retirement-accounts/11031)** > > Dems Target Private Retirement Accounts Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs RALEIGH — Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts —... Looks like someone’s making stuff up. :rolleyes: ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [February 12, 2010, 3:57pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/12 "2010-02-12T15:57:02Z")
In this morning’s news, goldbug websites spread financial disinformation and fear. And the Generalissimo is still holding on in his valiant effort to remain dead. ---
**Author:** ![cdsilv](https://avatars.discourse-cdn.com/v4/letter/c/a9adbd/32.png) [@cdsilv](https://boards.straightdope.com/u/cdsilv)\ **Post date:** [February 12, 2010, 4:05pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/13 "2010-02-12T16:05:07Z")
Ah yes, Franco is still dead, but what about Tito? ---
**Author:** ![Diver](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@Diver](https://boards.straightdope.com/u/Diver)\ **Post date:** [February 12, 2010, 6:40pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/14 "2010-02-12T18:40:12Z")
> [@2ply](#): > > No, no, you have it backwards. The government is going to continue to rob from **young** people to support the livestyles of older persons. No, actually the government is going to continue to steal the money the older people paid into the SSI fund and replace it with IOUs that they are too broke to redeem. If it had been left in place the SSI fund would be fine. ---
**Author:** ![Zsofia](https://avatars.discourse-cdn.com/v4/letter/z/7bcc69/32.png) [@Zsofia](https://boards.straightdope.com/u/Zsofia)\ **Post date:** [February 12, 2010, 6:50pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/15 "2010-02-12T18:50:41Z")
I’d say this is the stupidest thing I’ve ever heard, but I’m a public librarian and I hear amazingly stupid things all the time. Definitely the dumbest thing so far today, though. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [February 12, 2010, 9:35pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/16 "2010-02-12T21:35:53Z")
> [@runner pat](#): > > [IRA & 401k Theft Plotted by US Government - SilverSeek.com](http://news.silverseek.com/GoldIsMoney/1263437229.php) Believe it or not, I can find a grain of truth in this. This first link quotes a BusinessWeek article, “The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.” The link to the original BusinessWeek article is broken, but I think it may be referring to [this Bloomberg article](http://www.businessweek.com/investor/content/jan2010/pi2010018_130737.htm) from BusinessWeek. It, along with [this New York Times article](http://www.nytimes.com/2010/01/30/your-money/annuities/30money.html), discusses the idea that the US Treasury Dept is suggesting that people secure their retirements by converting part of their 401(k) and IRA accounts into annuities, which would offer guaranteed monthly income for life. Now, this is by no means “confiscating” your money, but one way that you can hedge against the ups and downs of the market. ---
**Author:** ![Jack\_Batty](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jack_batty/32/3201_2.png) [@Jack\_Batty](https://boards.straightdope.com/u/Jack_Batty)\ **Post date:** [February 12, 2010, 9:58pm UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/17 "2010-02-12T21:58:43Z")
Can’t we wait until Obama has confiscated all the guns before we start talking about him taking everyone’s 401k’s? Afterward, we’ll begin the Death to Every Firstborn signing statement he’s working on. ---
**Author:** ![fruitbat](https://avatars.discourse-cdn.com/v4/letter/f/58f4c7/32.png) [@fruitbat](https://boards.straightdope.com/u/fruitbat)\ **Post date:** [February 13, 2010, 12:27am UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/18 "2010-02-13T00:27:51Z")
This is my field and I know where the story derives from, but I wouldn’t credit it with even a grain of truth. Obama has asked a number of his advisors to explore ways to enhance retirement security outside of the Social Security system. One of the ironies of our current retirement system is that we yearn for the days when everyone had a pension, yet individuals rarely use their retirement assets to purchase their own pension. Any of us could choose to go through just about every major retirement provider to exchange a lump sum for a guaranteed income for life. One step that people ranging from Roger Ferguson to Bill Gale at Brookings have supported is to make the option of an annuity available for all retiring participants in 401k plans. There is also some talk about making a lifetime payout for a portion of the balance a negative election. In other words, if you don’t say no, then it is assumed that is what you want. I see this as a positive step. If I had my way every statement on retirement investments will have not just a balance, but an indicator of what that will translate to in lifetime income at various ages. This is an acknowledgment that for younger workers they can’t rely on Social Security alone and need to understand their need to save on their own. ---
**Author:** ![Ruken](https://avatars.discourse-cdn.com/v4/letter/r/f475e1/32.png) [@Ruken](https://boards.straightdope.com/u/Ruken)\ **Post date:** [February 13, 2010, 1:30am UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/19 "2010-02-13T01:30:42Z")
Didn’t the government confiscate gold at some point? Thought I read about this here somewhere. I’ll dig. ---
**Author:** ![Magiver](https://avatars.discourse-cdn.com/v4/letter/m/4491bb/32.png) [@Magiver](https://boards.straightdope.com/u/Magiver)\ **Post date:** [February 13, 2010, 4:46am UTC](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702/20 "2010-02-13T04:46:14Z")
It’s not like members of Congress would suggest anything rash like[taxing someone’s bonus at 100%](http://www.nydailynews.com/money/2009/03/17/2009-03-17_aig_bonus_checks_may_be_taxed_at_up_to_1.html) or [removing tax breaks from 401K’s](http://www.workforce.com/section/00/article/25/83/58.php). That would just be crazy talk. [Next page](https://boards.straightdope.com/t/us-government-planning-to-confiscate-401k-ira-accounts/528702.md?page=2)