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OK, that's an ideal, but who's going to pay for this universal 401K plan and the default 4%?
If your honest, you know the answer and it's not one that "I" don't think is realistic since the burden will mainly fall (Again) on the Middle Class, which is now fighting to keep its head above the waterline.
So for this universal 401K plan, would that take the place of a Social Security check or just another program to go hand in hand with a SSA check? ...Again, I already know the answer to this question.
I'm tired of funding nowhere ideals or anything with the word "universal" in it since that's a code word from the progressives.
It would be in addition to Social Security. The government would cover the paperwork and administration so businesses wouldn't have to. Workers would have to pay 4% of their pay into it. Business resists setting up retirement plans saying they cost too much and claim few would sign up. This would crush those objections.
Or working cash jobs, off the books. Those who spent their entire careers doing so, unless they invested on their own, are in for a big shock at retirement age.
Or working cash jobs, off the books. Those who spent their entire careers doing so, unless they invested on their own, are in for a big shock at retirement age.
US citizens born in US Territories where enrolling in SS is not common, may serve in the US military, and not really be aware of the 'benefits' of having an SS policy.
Any one of them after serving a contract, may get 'out' and return stateside to live anywhere in the US they want to live. Still without a SS policy, simply because they have never applied for one.
In the case of the US Navy, policy is to counsel each service member to get an EIN. To use in place of an SSN whenever possible.
US citizens born in US Territories where enrolling in SS is not common, may serve in the US military, and not really be aware of the 'benefits' of having an SS policy.
Any one of them after serving a contract, may get 'out' and return stateside to live anywhere in the US they want to live. Still without a SS policy, simply because they have never applied for one.
In the case of the US Navy, policy is to counsel each service member to get an EIN. To use in place of an SSN whenever possible.
That's news to me! I thought you needed a SSN to enlist.
According to recent data, 79% of workers have access to a 401K plan. However, only 41% of them actually participate. The “trouble” doesn’t just exist due to the lack of 401K plans, but from the fact that even when one is a available many people choose not to take advantage of it. There’s no reason to assume that a federal 401K would have better participation given that 38% of people who have the option decline even if free money in the form of a match is available. Some people just cannot or will not save for retirement.
And that is a travesty that this thread is not addressing. I completely agree and to those folks who do not take part in their employer's 401k plan I feel sorry for but they at least have that option.
Quote:
Originally Posted by ItIsWritten.
If it is automatic to participate in a 401k and effort needs to be taken to opt out, that would increase participation
That would be awesome but as some would say that it goes against free will.
Quote:
Originally Posted by TaxPhd
Yes, it would increase participation. But forcing people to spend their money on something that they don't want isn't generally a good idea, even if its for their own good.
And we completely agree that it is for their own good. But again the thread was addressing the fact that 20% do not have access to a 401k/403b. If states get into the universal 401k it couldn't be mandated. Only the employer would be able to do it by making it so that they have to opt out.
US citizens born in US Territories where enrolling in SS is not common, may serve in the US military, and not really be aware of the 'benefits' of having an SS policy.
Any one of them after serving a contract, may get 'out' and return stateside to live anywhere in the US they want to live. Still without a SS policy, simply because they have never applied for one.
In the case of the US Navy, policy is to counsel each service member to get an EIN. To use in place of an SSN whenever possible.
Military pay is subject to Social Security. How does an EIN cover that?
Military pay is subject to Social Security. How does an EIN cover that?
If an individual has a SS policy, then their salary is subject to SS [at a rate of five quarters per year, and not the four quarters per year rate that civilians are subject to].
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