According to recent reports, the proposed budget by the Obama administration contains plans to limit the size of your IRAs. Apparently, President Obama believes he knows better than you do how much money is a “reasonable” amount to fund your retirement.
Meanwhile, this administration continues to spend money far beyond what most Americans consider to be reasonable on a daily basis. Read about Vice President Biden’s recent trip to France in my full article here!
You may be wondering, “Why would the government want to limit how much I can put in my IRA?” The answer is simple….tax revenue. IRA accounts grow tax deferred, which means the government can’t get their hands on your money until you take a withdrawal. This is why they came up with Required Minimum Distributions – to make you take a taxable withdrawal, whether you need the money or not.
So how can you minimize your tax liability in retirement if Obama is successful in limiting IRAs?
Consider funding a non-qualified (which means “cash,” or non-IRA, post-tax money) Fixed Index Annuity. You will enjoy the same tax-deferred treatment as in an IRA. Plus, you’ll have the added benefits of principal protection and annual lock-in of your gains. There is no limit to how much you can put into a non-qualified Fixed Index Annuity on an annual basis, and what’s more, there is no such thing as a Required Minimum Distribution in a non-qualified FIA. That means you, not the government, get to decide how much you should save for retirement, and if and when you should take withdrawals.
As the economic and political climate in this country continue to change, we are here to help you stay educated on your options when planning for retirement. We look forward to visiting with you to answer any questions you may have.