It's really sad. In a time of economic uncertainty, people will mattress it. this is awful for economy, which is already hurting. so things will get worse because of it...
they are such idiots!

Time is short. The way I see it, they will do one or two things.

1. To avoid everyone withdrawing their money out of retirement accounts in a panic, they initial 'tax' on the accounts will be something substantially under the 10% early withdrawal penalty. Something on the order of 1% or 2%, and only on accounts exceeding a certain amount, say $1M. Then they will drive the first number up and the second number down over the years.

2. They will raise the early withdrawal penalty crazy-high - like 25%.

I've got to get to Texas first. My accounts are getting cashed out this year or next. My house is on the market now, and I'm hoping to start packing soon!

I'm out of all markets and cashed in all 401K's, and no 'savings' account. I'm not trusting any of the 'institutions'.

I'm not taking immediate action as long as the GOP holds the House. If the Dems regain control in 2014, we're screwed in many ways, and this is one of them.

Which is why I dissolved my Roth a few years ago.