Dems Target 410Ks

[clayfoushee]

This is another "tin-foil hat" rumor, but to understand why, one needs to understand why a Congressional hearing is held and what it is designed to accomplish. When Congress is in session, there are often 5 or more hearings per day in various committees. These hearings are structured to publicly air a large number of views representing very diverse and different perspectives. Since Congress is composed of those you have voted to represent you, it is the primary means by which the legislative body puts every thing on the table for public discussion and maintains transparency with the public.

It is this very public debate in hearings and other forums, that allows representative to take the temperature of the public. A few ideas gain traction in this way, but the vast majority of views and proposals don't progress past the submission of written testimony.

This particular rumor about confiscating 401k accounts began when one of the witnesses in one hearing (referred to in the link above) presented such a proposal as one means of guaranteeing that a 401k wouldn't be wiped out by a market collapse. It was a radical view, and polar extreme views on both sides are the norm in these hearings. In that same hearing, other witnesses presented strong opposing views.

If one gets hysterical about what one witness (out of hundreds) says in one Congressional hearing, you're likely going to have to double or triple up on your blood pressure medication, and your anti-anxiety pills. Just because one witness tosses something out there, doesn't mean there is a plan to draft legislation. It is simply one voice among the cacaphony of views.

I would give this proposal exactly a 0% probability of going anywhere.