October 10th, 2008
12:00 PM ET
14 years ago

McCain makes new 401k proposal

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2008/images/10/10/mccain2.jpg caption=" McCain has proposed another economic change."]
(CNN) - John McCain proposed suspending the requirement that investors begin drawing down their IRAs and 401Ks soon after age 70, his second major economic proposal of the week.

"We must also protect investors ­ especially those relying on their investments for retirement," McCain told the crowd at a campaign event in La Crosse, Wisconsin Friday.

"Current rules mandate that investors must begin to sell off their IRAs and 401Ks when they reach age 70 and one half. To spare investors from being forced to sell their stocks at just the time when the market is hurting the most, those rules should be suspended."

Listen: Later Friday afternoon, senior McCain advisor Doug Holtz-Eakin offered more information on the plan

Earlier this week, McCain unveiled a $300 billion plan for the government to purchase mortgages at full value from banks and directly re-negotiate the terms with homeowners. The plan has drawn criticism from economists and from the Obama campaign, which has charged that it would mean major profits for lenders and saddle taxpayers with the cost.

Filed under: John McCain
soundoff (283 Responses)
  1. Veteran in Kansas

    Republican Sen. John McCain’s recent statements that he would revive President Bush’s scheme to privatize Social Security. (march 2008)

    Now of course is the problem that those that have 401Ks but dont want to draw them down verus those that have 401Ks and were relying on them to make ends meet. I know McCain knows lots of people that have to draw down their 401Ks because they are his age, but how many folks does he know that were actually counting on that money for retirement income.

    October 10, 2008 03:03 pm at 3:03 pm |
  2. anne

    wake up people you have to withdraw IRA money at seventy and one half. do you what to take it out today, and lose 30 percent or wait a while for markets to come back

    October 10, 2008 03:07 pm at 3:07 pm |
  3. Carmen

    Just to set the record straight (and I do taxes for a living) the penalty for early distribution on a 401K or traditional IRA is 59 1/2. At age 70 1/2 you have to start taking distributions and pay taxes THEN on the amount you take out,. The penalty is 10 percent, and in some cases, if you are laid off from work or the company goes out of business, there is a chance you can cash in your 401K WITHOUT the 10 percent penalty. My advise is roll it over to a IRA and take your distributions from it. Check with your tax advisor on the best way to handle it. As was noted before, I believe McCain shoots from the hip and doesn't know what he is aiming at most of the time. McCain and Palen both haven't got a clue.

    October 10, 2008 03:08 pm at 3:08 pm |
  4. Jr

    McCain campaign national spokeman ( Trucker bounds ) make me sick!!! Red hair always lie!

    October 10, 2008 03:08 pm at 3:08 pm |
  5. Tracey

    What regulations require that people start selling off retirement investments when they turn 70 and a half? Is this federally mandated or state – how much do they have to sell – what is the penalty for not selling – and WHY do they have to sell?

    October 10, 2008 03:09 pm at 3:09 pm |
  6. anne

    DO any of you understand the rules of IRA apparently not by your replies tothis blog. Funds have to be withdrawn at seventy and one half

    October 10, 2008 03:10 pm at 3:10 pm |
  7. BJ in NC

    He means a 40K the way the economy is going. He does not have a plan except to rob the poor and give to the rich.

    October 10, 2008 03:11 pm at 3:11 pm |
  8. Hillary Democrat

    I don't want change, I just want what we have to work. Barack Hussein Obama and Botox Biden will instill socialism into our government. Please wake America. We can not have this happen and will change our country forever. Stop and think before you vote.

    October 10, 2008 03:12 pm at 3:12 pm |
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