11 thoughts on “Hey, Illinois”

  1. I’m glad I’ve moved out. Granted, I’ve moved to the state that losing population at an even higher rate. 🙂

        1. Frying pan, fire.

          If you’re going to live in a high-tax state, it would have been better to come out to California, where you’d at least get decent climate.

  2. Wow, should it come to pass, that sounds like a big step towards that Atlas Shrugged dystopia we’ve all been looking forward to.

  3. Most “private pensions” are going the way of the dodo bird. But tell me…could they start taxing 401K’s? Even though the money that goes into them is after tax (at least as far as local/State taxable income is concerned)? Wouldn’t be the first time they figured out a way to double-tax us. They could argue that the employer matching funds that typically accompany 401K’s were never State/Local taxed; that could be their excuse.

    1. You have it backwards. Contributions to a regular 401K are pretax dollars so everything you draw out is taxed at your ordinary tax bracket rate. Roth 401K contributions are after tax dollars, so just like a Roth IRA, they’re tax free. For now, at least.

      1. “Contributions to a regular 401K are pretax dollars so everything you draw out is taxed at your ordinary tax bracket rate.”

        Yes, “pretax” as far as you Federal income tax in concerned; you are allowed to “defer” paying that on contributed amounts to your 401K. You are then hit with Federal tax when you finally roll it over. I was speaking about local/state income tax; you pay such taxes typically on your gross W2 form income. Not the “adjusted” amount that is your gross minus your 401K contribution amount the federal tax allows. I was saying when you finally roll over your 401K after you retire do you currently pay state/local taxes again as well as Federal?

  4. You’re missing a point here. The Illinois government, and the Federal government in general, don’t believe that’s your money in those accounts. This particular technique was raised during the Obama administration, but way before that (1990s) there were US Congressmen who made the claim that the money in 401K accounts belonged to the US government, and they “wanted to get their share.” I kid you not.

Comments are closed.