GWBH Posted February 20, 2019 at 02:59 PM Share Posted February 20, 2019 at 02:59 PM ... to help resolve the debt for state employee pension funds.The tax, if any, should be on Democrat Legislator pensions!! https://finance.yahoo.com/video/illinois-may-tax-private-retirement-164356321.html?fbclid=IwAR12eJXG8GogPxXwM5KwUK-k5O0fOjKLXjoMp3AE7qIGm7T_QCs5xyDjtRY Link to comment Share on other sites More sharing options...
TomKoz Posted February 20, 2019 at 03:47 PM Share Posted February 20, 2019 at 03:47 PM Silly, they will just vote to increase their pensions! Link to comment Share on other sites More sharing options...
soylentgreen Posted February 20, 2019 at 04:20 PM Share Posted February 20, 2019 at 04:20 PM So help me understand...I saved money for retirement. Now that money is going to be stolen to pay pension benefits that the state promised but can't deliver? heck NO! Link to comment Share on other sites More sharing options...
BigJim Posted February 20, 2019 at 04:41 PM Share Posted February 20, 2019 at 04:41 PM That seals the deal for me. I will retire the day AFTER I move out of state, not a day before. Link to comment Share on other sites More sharing options...
RECarry Posted February 20, 2019 at 04:55 PM Share Posted February 20, 2019 at 04:55 PM Friends have been circulating lists of "10 best states for retirees" again this week. Their reaction is to not seek the absolute lowest-tax states to retire in - but to seek locations with stability and sustainability. Conversely, Illinois will continue to freak people out with all the tax, fee, and permit schemes being proposed. Who can retire in a place where you have no voice in keeping your expenses stable and predictable? This is what kicking the can down the road looks like - failure to fund gradually over long period time means big adjustments and hurt in the future. Add the shock to public services from unrestrained sanctuary city actions and the unstable index goes up even more. Link to comment Share on other sites More sharing options...
BobPistol Posted February 21, 2019 at 02:37 AM Share Posted February 21, 2019 at 02:37 AM $$$MORE MONEY FOR CRONIES$$$ Link to comment Share on other sites More sharing options...
InterestedBystander Posted February 21, 2019 at 02:48 AM Share Posted February 21, 2019 at 02:48 AM Well, all of the Democrats do not support this SR0127 RETIREMENT INCOME TAX-OPPOSE http://ilga.gov/legislation/BillStatus.asp?DocNum=127&GAID=15&DocTypeID=SR&LegId=120447&SessionID=108&GA=101 Link to comment Share on other sites More sharing options...
chicagoresident Posted February 21, 2019 at 01:23 PM Share Posted February 21, 2019 at 01:23 PM Well, all of the Democrats do not support thisSR0127 RETIREMENT INCOME TAX-OPPOSEhttp://ilga.gov/legislation/BillStatus.asp?DocNum=127&GAID=15&DocTypeID=SR&LegId=120447&SessionID=108&GA=101Yet not surprising is all the Pritzkers including JB himself are members of one of the groups lobbying for this tax on retirement. http://civiccommittee.org/members Link to comment Share on other sites More sharing options...
AlphaKoncepts aka CGS Posted February 21, 2019 at 01:30 PM Share Posted February 21, 2019 at 01:30 PM Liquidate your paper and buy tangibles like gold and other precious metals, when this passes. Link to comment Share on other sites More sharing options...
GWBH Posted February 21, 2019 at 04:06 PM Author Share Posted February 21, 2019 at 04:06 PM Well, all of the Democrats do not support this SR0127 RETIREMENT INCOME TAX-OPPOSE http://ilga.gov/legislation/BillStatus.asp?DocNum=127&GAID=15&DocTypeID=SR&LegId=120447&SessionID=108&GA=101This is true - but... that's it's even considered is a slap in the face.Tax somebody's life 401k holdings of $30,000.00 to help fund a state pension that's double that amount or more for one year!!!!REALLY HACK'S ME OFF!The Democratic members of the ILGA created this crap - I say tax their payroll and pension plans to make up the loss. Link to comment Share on other sites More sharing options...
Quiet Observer Posted February 21, 2019 at 04:46 PM Share Posted February 21, 2019 at 04:46 PM Liquidate your paper and buy tangibles like gold and other precious metals, when this passes. Well, all of the Democrats do not support this SR0127 RETIREMENT INCOME TAX-OPPOSE http://ilga.gov/legislation/BillStatus.asp?DocNum=127&GAID=15&DocTypeID=SR&LegId=120447&SessionID=108&GA=101This is true - but... that's it's even considered is a slap in the face.Tax somebody's life 401k holdings of $30,000.00 to help fund a state pension that's double that amount or more for one year!!!!REALLY HACK'S ME OFF!The Democratic members of the ILGA created this crap - I say tax their payroll and pension plans to make up the loss. I do not want to see my retirement taxed, but I also want to know what is actually in the law. At some point you will have to convert those tangibles into cash to live on. Would not it then be counted as income and taxed that year? I do not know if the proposed law would tax retirement benefits at the same rate as regular income. Would not the tax be based on the yearly payout and not the total holdings, just as interest and dividends are taxed yearly? Link to comment Share on other sites More sharing options...
soylentgreen Posted February 21, 2019 at 05:37 PM Share Posted February 21, 2019 at 05:37 PM Friends have been circulating lists of "10 best states for retirees" again this week. Their reaction is to not seek the absolute lowest-tax states to retire in - but to seek locations with stability and sustainability. I don't think this has anything to do with where you retire. If you have a 401k now, your contributions and the growth is tax deferred. You don't pay taxes on that money now. You DO pay taxes on the money when you withdraw it. It's income. This tax would be essentially ending all or part of the state's portion of the tax exempt status of contributions and/or market growth. It is sickening. Link to comment Share on other sites More sharing options...
GWBH Posted February 21, 2019 at 05:43 PM Author Share Posted February 21, 2019 at 05:43 PM QO, I believe you are probably correct - it would be more than likely be taxed as income, except in the case of an IRA the interest / dividends earned would be reinvested into the account. But that remains to be seen when / if any bill is put forth.There are other states that tax retirement accnts, but my personal feeling is that we are already "taxed to death" in this state, plus I severely disagree with any tax on retirement $$ going to slush fund social program fixes for any and all financial problems within the state. Link to comment Share on other sites More sharing options...
gunuser17 Posted February 21, 2019 at 05:48 PM Share Posted February 21, 2019 at 05:48 PM As I understand the proposals being floated in Illinois, the goal would be to tax as income any withdrawals from 401ks/IRAs along with taxing pension payments. The Supreme Court case this week could thow some wrinkles for a state like Illinois since it must treat those with federal pensions the same as similarly situated people with state pensions - for example state police and federal marshalls. So, JB can't exempt a class of public employees from having their pensions taxed and still tax people with similar federal jobs on their federal pensions. I doubt SEIU and other public unions and retired politicians are going to be too supportive of taxing their generaous pension payments. Link to comment Share on other sites More sharing options...
soylentgreen Posted February 21, 2019 at 07:16 PM Share Posted February 21, 2019 at 07:16 PM As I understand the proposals being floated in Illinois, the goal would be to tax as income any withdrawals from 401ks/IRAs along with taxing pension payments. Withdrawals are already taxed as income. Link to comment Share on other sites More sharing options...
richp Posted February 21, 2019 at 07:17 PM Share Posted February 21, 2019 at 07:17 PM Hi, Let me see -- I paid taxes on this money when I earned it, and then I saved it and invested it in one form or another. And of course, I was required by law to pay into Social Security in the years I was employed, and when I was self employed worker. So now I will pay taxes again on those funds when I start to reap the benefits of living responsibly and saving for my old age. Something doesn't sound right there... Rich Phillips Link to comment Share on other sites More sharing options...
gunuser17 Posted February 21, 2019 at 07:46 PM Share Posted February 21, 2019 at 07:46 PM Soylentgreen, Illinois does not have a state income tax on social security, pension income or withdrawals from 401k/IRA. lRA/401k and pensions are subject to federal income tax. Many states do tax these benefits. Keep in mind that the income tax on 401k/IRA is based on pre-tax money that was put into those accounts and earnings on that pre-tax money. After tax money put into those accounts is not taxed again even at the federal level - such as a Roth IRA or Roth 401k. Link to comment Share on other sites More sharing options...
spec4 Posted February 21, 2019 at 08:46 PM Share Posted February 21, 2019 at 08:46 PM Indiana taxes my 401K /IRA withdrawls and pension. I understand the reasoning, that money wasn't taxed before, but still don't like it. Surprised it took Illinois so long to get around doing this. Link to comment Share on other sites More sharing options...
quackersmacker Posted February 21, 2019 at 10:47 PM Share Posted February 21, 2019 at 10:47 PM Soylentgreen, Illinois does not have a state income tax on social security, pension income or withdrawals from 401k/IRA. lRA/401k and pensions are subject to federal income tax. Many states do tax these benefits. Keep in mind that the income tax on 401k/IRA is based on pre-tax money that was put into those accounts and earnings on that pre-tax money. After tax money put into those accounts is not taxed again even at the federal level - such as a Roth IRA or Roth 401k.Excellent summary, correctly stated! Link to comment Share on other sites More sharing options...
45Badger Posted February 22, 2019 at 12:02 AM Share Posted February 22, 2019 at 12:02 AM Soylentgreen, Illinois does not have a state income tax on social security, pension income or withdrawals from 401k/IRA. lRA/401k and pensions are subject to federal income tax. Many states do tax these benefits. Keep in mind that the income tax on 401k/IRA is based on pre-tax money that was put into those accounts and earnings on that pre-tax money. After tax money put into those accounts is not taxed again even at the federal level - such as a Roth IRA or Roth 401k. What he says. There’s no threat to your pennies until you begin withdrawing them. The ultimate answer is still GTFOOI. New Hampshire. Live free or die. Eat Lobstah. Ski, swim, snowmobile, fish, hunt and shoot all you want. 3 years, 10 months and a couple weeks.... Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Nanook Posted February 22, 2019 at 12:15 AM Share Posted February 22, 2019 at 12:15 AM Liquidate your paper and buy tangibles like gold and other precious metals, when this passes. FDR's ghost chuckles at this idea. I do agree with you, but it won't be the first time gold gets confiscated by the government. Link to comment Share on other sites More sharing options...
AlphaKoncepts aka CGS Posted February 22, 2019 at 01:06 AM Share Posted February 22, 2019 at 01:06 AM Liquidate your paper and buy tangibles like gold and other precious metals, when this passes. FDR's ghost chuckles at this idea. I do agree with you, but it won't be the first time gold gets confiscated by the government. Gold coins are alot easier to hide than ones and zeros on a digital account somewhere. #shallnotcomply Link to comment Share on other sites More sharing options...
BobPistol Posted February 22, 2019 at 03:22 AM Share Posted February 22, 2019 at 03:22 AM Withdrawals are already taxed as income. They're taxed federally, not state of Illinois (YET) Link to comment Share on other sites More sharing options...
Nanook Posted February 22, 2019 at 03:50 AM Share Posted February 22, 2019 at 03:50 AM Liquidate your paper and buy tangibles like gold and other precious metals, when this passes. FDR's ghost chuckles at this idea. I do agree with you, but it won't be the first time gold gets confiscated by the government. Gold coins are alot easier to hide than ones and zeros on a digital account somewhere. #shallnotcomply You are correct. Back when it happened from what I understand, there was serious non-compliance with the mandate. Lots of gold was not turned in. And FDR screwed the people twice. Once when they turned it in at $20 per ounce and then he raised the price to $35 after the confiscation. Link to comment Share on other sites More sharing options...
BBM22 Posted February 22, 2019 at 01:01 PM Share Posted February 22, 2019 at 01:01 PM It's looking like the best investment will be in a UHaul truck..... Link to comment Share on other sites More sharing options...
JTHunter Posted February 22, 2019 at 08:27 PM Share Posted February 22, 2019 at 08:27 PM Soylentgreen,Illinois does not have a state income tax on social security, pension income or withdrawals from 401k/IRA. lRA/401k and pensions are subject to federal income tax. Many states do tax these benefits. Keep in mind that the income tax on 401k/IRA is based on pre-tax money that was put into those accounts and earnings on that pre-tax money. After tax money put into those accounts is not taxed again even at the federal level - such as a Roth IRA or Roth 401k. I've posted this before so here it is again. Link to comment Share on other sites More sharing options...
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