http://www.hrbenefitsalert.com/401k-matches-irs-takes-a-bite/ Daily dose of benefits news and know-how Tue, 04 Aug 2009 18:30:38 -0400 http://wordpress.org/?v=abc hourly 1 http://www.hrbenefitsalert.com/401k-matches-irs-takes-a-bite/comment-page-1/#comment-1279 Larry Fri, 31 Oct 2008 13:09:49 +0000 http://www.hrbenefitsalert.com/?p=278#comment-1279 Minimize this? Get the FairTax program passed. That would do away with ALL income taxes, payroll taxes, estate taxes and substitute a national sales tax for them. You would get a rebate on the taxes you incurred for basic living items each month. This would stimulate the economy because companies who now move offshore because of the odioius tax programs in the US would return, and many more companies around the world would want to relocate here because of the new tax structure. Minimize this? Get the FairTax program passed. That would do away with ALL income taxes, payroll taxes, estate taxes and substitute a national sales tax for them. You would get a rebate on the taxes you incurred for basic living items each month.
This would stimulate the economy because companies who now move offshore because of the odioius tax programs in the US would return, and many more companies around the world would want to relocate here because of the new tax structure.

]]> http://www.hrbenefitsalert.com/401k-matches-irs-takes-a-bite/comment-page-1/#comment-1274 Marti Thu, 30 Oct 2008 18:29:09 +0000 http://www.hrbenefitsalert.com/?p=278#comment-1274 What can be done to avoid/minimize this? What can be done to avoid/minimize this?

]]> http://www.hrbenefitsalert.com/401k-matches-irs-takes-a-bite/comment-page-1/#comment-1273 Alison Farrin Thu, 30 Oct 2008 18:28:04 +0000 http://www.hrbenefitsalert.com/?p=278#comment-1273 And your point is? If it was the employee's money, it would still be taxed. The end result of an employer match is that the employee has more money to use in retirement. Good social security planning by the Participant would see the employee draw on his 401(k) at retirement and NOT draw Social Security for years, negating this effect in its entirety for many years and increasing his SS benefit when he do draw. Further, the incentive of an Employer match is what get Employees to contribute to the plan and save, leaving far fewer to be dependent only on Social Security. And your point is? If it was the employee’s money, it would still be taxed. The end result of an employer match is that the employee has more money to use in retirement. Good social security planning by the Participant would see the employee draw on his 401(k) at retirement and NOT draw Social Security for years, negating this effect in its entirety for many years and increasing his SS benefit when he do draw. Further, the incentive of an Employer match is what get Employees to contribute to the plan and save, leaving far fewer to be dependent only on Social Security.

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