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. J E

    John, you might want some "experts" to look over your proposals before making them public. That last one didnt go over too well with conservatives.

    I hear that sen from Illinois has an excellent economic team. Let them have a gander.

    October 10, 2008 01:04 pm at 1:04 pm |
  2. kamenwati

    Plan for your own retirement, McCain. Leave ours alone.

    October 10, 2008 01:05 pm at 1:05 pm |
  3. redhades

    I'm tired of this whole nonsense! Is it too late to hunt for new Republican candidates? The race seem to be a one-sided affair now. I want a tougher opponent for 'that one'. McCanine and Palin seem to have no clue what they are doing!

    October 10, 2008 01:05 pm at 1:05 pm |
  4. Shay

    McCain you are a fool.

    October 10, 2008 01:05 pm at 1:05 pm |
  5. Maureen / Newman, California

    The more this guys speaks, the more I think he and Palin are intellectual equals.

    October 10, 2008 01:05 pm at 1:05 pm |
  6. Yasriel

    Have you checked your 401K today?
    I Just checked mine and I have lost 30% from its all time high.

    No Way, No How, No McCain/Palin

    October 10, 2008 01:06 pm at 1:06 pm |
  7. John Huynh

    Fight for what's right!

    Go McCain.

    October 10, 2008 01:06 pm at 1:06 pm |
  8. Jim D

    Wow. Groundbreaking. Thanks John – just another 'look like I am doing something while doing nothing of signifiance' idea from the McCain campaign. Clueless.


    October 10, 2008 01:07 pm at 1:07 pm |
  9. values


    October 10, 2008 01:07 pm at 1:07 pm |
  10. Keite, Fort Worth, TX

    Duh....that didn't take much thought Mr. McCain.

    October 10, 2008 01:08 pm at 1:08 pm |
  11. Patrick, Takoma Park MD

    This is the first remotely useful idea that McCain has offered. But doesn't make up for that idiotic proposal to buy mortgages from banks at face value.

    October 10, 2008 01:09 pm at 1:09 pm |
  12. Debbie

    The failed GOP financial policies are dissolving 401k's quite nicely thank you! I've saved all my life and was looking to retire in 10 years with a nice nest egg as a result of all my hard work. But every time a Republican opens his or her stupid mouth the Dow drops another 400 points...in spite of relatively diversified and conservative investment, my 401k is down 30%...

    So thanks but no thanks Grampa. You can sell a couple of houses and life off that. Not me.

    October 10, 2008 01:09 pm at 1:09 pm |
  13. Amy, NY


    Just because his conservative base is not happy about his 300bn plan, he had to come up with somthing that will work for investors?
    Is this the kind of man we want leading this country in a time of crisis?
    Don't we deserve a break, after 8 yrs of Bush?
    Americans, wake up!! PLEASE!

    October 10, 2008 01:10 pm at 1:10 pm |
  14. California Gold

    A 72 year old man's financial proposal is for those age 70-1/2.

    This is case-in-point why McCain is out-of-touch.

    October 10, 2008 01:11 pm at 1:11 pm |
  15. GET REAL.

    Uh... if you read that "Bush getting ready to transition" article (why can't we comment on that?!?), it says that McCain's transition officer is (surprise, surprise!) a LOBBYIST.

    Uh... so a lobbyist is going to be one of the first people TEACHING McCain... unless I'm missing something in the reading of the article...

    That's a sure-fire attack line if Obama wants to take it...

    C'mon CNN, you haven't been posting me enough lately...

    October 10, 2008 01:11 pm at 1:11 pm |
  16. Bruce

    One important story that has been overlooked in the media is Sarah Palin's long relationship with the largest third party in her state, the Alaskan Independence Party. Sarah accompanied her husband to the party's convention in 1994, and although she never joined the party – she has been a registered Republican since 1982 – her husband, Todd Palin, was a member from 1995 to 2002. Governor Palin herself warmly greeted this year's Alaskan Independence Party convention, and has made no effort to disavow the party and its radical agenda.

    October 10, 2008 01:12 pm at 1:12 pm |
  17. Darla (Edmonton, Canada)

    Too little ... too late! Mr. McCain ... you needed new and reasonable ideas weeks ... uhh, months ... uhh, years ... ago!

    October 10, 2008 01:13 pm at 1:13 pm |
  18. Bruce

    Both Obama and Ayers served on the Annenberg Foundation board. Isn't Mrs. Annenberg a major bundler, fundraiser for McCain? How come that is not brought up to the McCain campaign?
    I would challenge anyone to find one person involved in the support of education in Chicago (especially involved with Annenberg) who doesn't know William Ayers.
    Annenberg's widow just endorsed John McCain over the weekend. She thought Ayers was a stand up enough person to allow him to serve on the Annenberg board.
    Does that make Annenberg a terrorist, too? And therefore John McCain is a terrorist as well??

    October 10, 2008 01:13 pm at 1:13 pm |
  19. Tracey

    At this point, he's liable to say anything and do anything! Wow! Even if he knows it won't work. This is pathetic!

    October 10, 2008 01:13 pm at 1:13 pm |
  20. TERRI



    October 10, 2008 01:14 pm at 1:14 pm |
  21. Vegas Barbie for Obama

    This is pathetic, while his sidekick conducts hate rallies, John is feebly suggesting yet another pathetic attempt to make this economy look like anything better than it is, thanks to HIS party, HIS president. Between Bush speaking this morning and now this nonsense from McCain, voters should be running from the Repubs. VOTE OBAMA/BIDEN for CHANGE WE CAN BELIEVE IN!!
    YES WE CAN!!

    October 10, 2008 01:14 pm at 1:14 pm |
  22. Bruce

    WHO DID YOU STEEL THAT IDEA FROM. Oh I see this is something that really helps out the FAT CATS that have really BIG 401Ks and you must do everything possible to BAIL THEM OUT

    October 10, 2008 01:15 pm at 1:15 pm |
  23. THAT ONE!!!!

    LOL... Obama has some sort of plan as well.. its just not as IMPORTANT at the moment with the Crisis we are in.

    So McCain has been running for Pres and he just nows comes up with a plan in hopes it attracts voters?? WEll it wont help me now and I TRUST Obama/Biden and his Team which is the best Team I have ever seen the way he has ran his campaign... and know they will have a good system and plan for 401K... Better than McCains!!

    October 10, 2008 01:15 pm at 1:15 pm |
  24. sabuc for Obama

    "Reporters did not get advance warning of McCain¹s announcement"? I don't think McCain did either as this was pulled out some dark hole as another idea to be thrown to see if it sticks. Maybe another campaign suspension will help clear up their economic plan? But make it permanent this time!

    October 10, 2008 01:15 pm at 1:15 pm |
  25. Nate

    How typically Republican! The economy is tanking, the government is broke, so let's give another tax break to the wealthiest! Stop and think about this proposal – anyone who is 70 1/2 and still doesn't need to withdraw at least one actuarially remaining year annually from their 401K must have a large independent source of other income and is not the typical retired wage-earner. The purpose of the 401K law was not to eliminate the tax on earned income, but to defer it to elder years when one would presumably be in a lower tax bracket, and the minimum annual withdrawal at 70 1/2 was included to prevent the wealthy from using a 401K to totally avoid income taxes! An average retiree has to withdraw even more than the minimum annual amount in order to live. If McCain is worried about his wealthy constituency losing money on selling stock, he could have simply proposed that the 401K holder could elect to pay the income tax on the minimum annual withdrawal without actually withdrawing the money, eliminating the need to sell stock. Is McCain this dumb or does he just think the rest of us are?

    October 10, 2008 01:16 pm at 1:16 pm |
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