Your Taxes in 2013 with Chuck Gibson and Melanie Pelayo – December 6

6 Comments

1. Well, like Elizabeth, I’m wondering whether/how much money I should take out of my IRA before the new year.

   I’ve got enough saved that I’ve got about twice what I should need to live comfortably the rest of my life with my IRA worth roughly twice what I’ve saved outside the IRA. Beyond that I have a paid off home.

   As far as income goes, my income from my hobby job puts me a little with Obama’s one-percenter bull-eye.

   So, I’m thinking that perhaps this is my last best chance to move some of that money out of the IRA (and pay the taxes) and move it into physical bullion (stored outside the home) before the government starts really raiding “over-sized” IRAs like mine.

   So, should I pull some, how much and what are the considerations I should throw into a spreadsheet to guide such a decision.

   Thanks much,

   1. THIS TIME WITH TYPEOS FIXED:

      Well, like Elizabeth, I’m wondering whether/how much money I should take out of my IRA before the new year.

      I’ve got enough saved that I’ve got about twice what I should need to live comfortably the rest of my life assuming I can keep up with inflation and rising taxes. My IRA is worth roughly twice what I’ve saved outside the IRA. Beyond that I have a paid off home.

      As far as income goes, my pay-check from my hobby day-job puts me has me already within Obama’s one-percenter bull-eye.

      So, I’m thinking that perhaps this is my last, best chance to move some of that money out of the IRA (and paying my currently high income taxes) and move it into physical bullion (stored outside the home) before the government starts really raiding “over-sized” IRAs like mine.

      So, should I pull some, how much and what are the considerations I should throw into a spreadsheet to guide such a decision.

      Thanks much,

2. Quick Question –

   Do private practice tax preparers now ‘work for’ the IRS? I remember hearing that they now have far more accountability (and maybe first allegiance) to the IRS … Where is an honest, hardworking taxpayer to go for good advice?

   Can you comment ….?

3. Hi Catherine,

   I am currently in the unfortunate position of collecting unemployment benefits from the feds. Federal unemployment benefits expire the week ending December 29. What is your sense that congress will pass legislation extending unemployment benefits before they expire on the 29th? Hope you are having a wonderful Holiday season!

4. Would having a Self Directed IRA that was in cash notes, precious metals or real estate protect folks from potential confiscation of our IRA’s by Uncle Sam? If not, then a Self Directed IRA is threatened by confiscation as is the regular IRA.

   What effect, if any, would a Self Directed IRA have to prevent Uncle Sam from taking private property against our will? Is the only way out of this potential confiscation to sell the IRA and pay the taxes?

   Is there any way to use the money from an IRA that folks are forced to sell for business purposes and therefore reduce the taxes owed? Please give examples of what we could invest in to protect us from this coming taxation.

   Is it now time to purchase a different passport and renounce American citizenship? Americans are now being discriminated against because of our citizenship due to the new FACTA rules. Already, no company wants to hire an American if they work overseas, marry an American, be partners with an American, or serve as their banker.

   Obama is considering confiscating 401(K’s) and IRA’s. He wants to force folks into a government “annuity” of US Treasury Bonds when Uncle Sam cannot sell his bonds anymore to China and Japan. The Federal Reserve is buying up to 60% of them already. Of course, your heirs would get nothing from this newest boondoggle if you die.

   Contributions to these “retirement” programs are already being considered as a tax expenditure to a cut in fiscal cliff negotiations. So there is no incentive to save especially in USD’s, and especially since the IMF has just approved “capital controls”.

   If not, I see no point in my keeping an IRA since the government is looking to harvest everything it can from those of us who saved our money and fully funded a generous retirement. For example, Mit Romney’s IRA is worth 100 million plus so why would he or anyone like me want the Government to “help us” with their forced annuity?

   At the same time, they want to reduce our Social Security payments while increasing the taxes by 0.09% more than we pay now and increasing the amount we must pay.
   All workers of any kind will be made to put another 5% into this “boondoggle annuity” if passed and still pay more on Social Security and get less. The government is merely harvesting everything it can from the middle classes while having big budgets to pay for more wars and corporate outsourcing of American jobs.

   With a dollar that has lost its purchasing power, no interest on our savings, more taxes on workers for Medicare and Social Security and the potential confiscation of our IRA’s, etc., what is the meaning of saving over a lifetime? Money is to be a store of wealth and not just used for transactions. The USD fails as it is no longer a store of wealth.

   FACTA rules made my bank of 10 years decide to TERMINATE my account on December 31, 2012. I cannot even have a joint bank account with my French husband. I am an American who owns my own money which is marked “American” so therefore foreign banks don’t want my business unless I pay 10-50 times the normal fees to compensate them from the new FACTA rules.

5. Hi Catherine –

   I am looking forward to this call. While I want to know what is going to hit the economy, I am more interested in how to minimize the fallout … perhaps even some of the ways to win (short of investing in General Electric) …

   As always, thank you Catherine (and team) for leading the way …

   Happy Holidays!

   Dave Kohler

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