Economy

progree

(11,493 posts)

3. "to withdraw and or close their 401k" either that, or mandate that all 401k plans offer these

Tue Jan 24, 2023, 03:24 PM

Jan 2023

kind of options. (403b plans too).

Congress should allow owners of 401ks that are less than $500,000 in value to withdraw and/or close their 401k and put $$$ into an interest bearing account that is not at risk of stock market fluctuations and protected by FDIC.

IRA's are allowed to have CD's for example, and plain old ordinary bank and credit union savings accounts, and Treasury securities of all kinds - regular bonds, I-bonds, TIPS, whatever (which is just as good as FDIC since after all it's the same US govt that stands behind these and the FDIC) ... I can't think of anything on the safe and guaranteed side that IRAs aren't allowed to have ... so there's no fundamental reason then that 401k's shouldn't have these to offer as well, and ought to be mandated to provide them.

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Rich Customers Pull Money From Banks Offering Paltry Interest Rates [View all] mahatmakanejeeves Jan 2023 OP

I am not wealthy but I sure am not leaving my money in a bank that pays .20% interest. nt doc03 Jan 2023 #1

I'm looking around for a place to park some of my money while keeping within in2herbs Jan 2023 #2

"to withdraw and or close their 401k" either that, or mandate that all 401k plans offer these progree Jan 2023 #3

Last I read the average 401k was $140,000. Leaving it in a 401k it will be subject to stock market in2herbs Jan 2023 #4

I think virtually all 401k's allow for fixed income investments? But not necessarily all the progree Jan 2023 #5

I thought I read that under a bill Congress just passed that withholdings are now in2herbs Jan 2023 #6

No, not IRAs, but yes, I believe that's true for 401k's, unfortunately progree Jan 2023 #7