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. Rob

    Has anyone noticed Sarah Palin's new hairdo? It's to hide an earpiece they've given her so they can prompt her when she's flubbing with her words.

    October 10, 2008 02:42 pm at 2:42 pm |
  2. BatCat05

    Isn't this the same pandering McCain that wanted a Gas Tax Holiday? Go ahead and trick Americans into doing something foolish with their 401K's, how much worse can the American financial crisis get. McCain/Palin, Bad for America and even worse for its citizens. OBAMA/BIDEN That's the TICKET!

    October 10, 2008 02:42 pm at 2:42 pm |
  3. James

    I thought it was 59 and a half not 70 and half? I could of swear they said if you touch your 401k or investment before age 59 and a half you get a 10% penalty tax. I never heard it being 70 and a half before.

    October 10, 2008 02:42 pm at 2:42 pm |
  4. Denise

    McCain turn in your ticket you are a disgrace to the NATION. You are running a racist sleazy campaign and it is a disgrace to mankind. Obama have a plan and you have a scheme. You are erractic and Obama is cool like James Bond. Give it us a Break and go home.

    October 10, 2008 02:43 pm at 2:43 pm |
  5. McCain+Palin=FEAR

    TRUE AMERICANS for McCain:
    Please tell us, wise one- exactly What makes a true American?
    Being white???????

    October 10, 2008 02:45 pm at 2:45 pm |
  6. Carolyn

    Of course John came up with this today. At 72, I'm sure he doesn't want to have to withdraw his 401k's now either... pay your taxes, John. And oh yeah, where are your wife's returns??

    October 10, 2008 02:45 pm at 2:45 pm |
  7. lance

    Of course the reason the government requires you to take out from your 401K at 70 1/2 in the first place is that the money sat growing tax-free for all those years and the goverment wants its tax money when you start withdrawing.

    So, to allow it to just sit for those 70 1/2 and older means the government won't get its tax money. It's OK, we'll just borrow more from the Chinese or whoever – until they stop lending to us.

    On the good side, it gives a reason to let panicky seniors keep their money in the market. The more people pull money out of the market, the lower stock prices go...

    October 10, 2008 02:45 pm at 2:45 pm |
  8. Skeeve

    Gail, I don't mind Bin Laden siting on my door steps – much easier to apprehend him then there then in some god forsaken mountains.

    October 10, 2008 02:45 pm at 2:45 pm |
  9. Felly

    McCain is erratic. He is too old and desparately making last minute policy proposals with poor judgement like Bush.

    October 10, 2008 02:46 pm at 2:46 pm |
  10. Ann

    I think the 401 suspension plan is a good one and although I don's back the buy up the bad mortgages if Obama had said it it would be the answer to all our prayers!! I myself had to put 10 to 20 percent down on my homes and have worked hard to pay the mortgages off in 15 to 20 years. I have an investment property that has an adjustable rate that will adjust in August. Property taxes have doubled and the value of the home has gone down by 20% and I say I will have to find a way to make it work. I made the investment and have to be responsible for my actions. I feel that the plan would be modified but it does show McCain is trying to take steps to correct the problem. A good president surrounds himself by experts in each area. Only a fool pretends to have all the answers himself (Barack) the rest of us are alittle confused. I guess you could say we were erratic!! I personally am sick of the national news channel broadcasting one politicians complete speaches everyday but not the other!! Obama doesn't have to be negative. He has the national news channels to do it for him.
    Here is to a better tomorrow.

    October 10, 2008 02:47 pm at 2:47 pm |
  11. varlee10

    Mccain is so desprate that he is going to take anything from anywhere. He wants to win at all cost and so he is blind to the fact there is nothing new in what he is saying. This not even a plan, his plan is to put this country down finally. Vote Obama people!!!!!!!!!!!!!!!!

    October 10, 2008 02:47 pm at 2:47 pm |
  12. America think for you

    Bomb Iran no more we need jobs over here. Our pockets are hurting. My kids are looking at me hungry and daddy cannot feed them. Bomd Iraq no more it cost $ billion a month while they have a $ 79 billion surplus and we in the US are running a $ 50 trillion dollars defficit. We need that $ 10 billion in the US. Alghada is in Afghanistan not in Iraq. 4000 young boys with bright future had lost their lives fighting an unjustify war. We need jobs in the US to pay for high gas and high grocery. No more bomb we are causing global warming to get worse with every bomb we drop.
    We need a president that understand the economy and that can work with world leaders. The economy is causing people to commit suicide we are fed up.

    October 10, 2008 02:48 pm at 2:48 pm |
  13. Observant Voter from Texas

    Go away McShame, Go AWAY!

    October 10, 2008 02:48 pm at 2:48 pm |
  14. Bruce

    What? this make no sense...
    I am sure that the losses in the market will not stop becuse 401K account for individuals are selling their stock...
    come on
    this is not the answer,, ,he is grasping at straw...zttack one day then come up with off the wall crap the next to make it look like he helping..he has no plan...
    he and palin are loosing and will throw whatever they can out there to try and win.
    McCain you were in the past an honorable man...you are now a fool.

    October 10, 2008 02:48 pm at 2:48 pm |
  15. Shari, NY

    You know, I had also asked about Dick Chency? Is he alright? As Bush's mouthpiece I find his silence rather deafening. Condi Rice only shows her head when there is a sudden eruption afield. As much as I am dissatisfied with Bush's performance he should get more support. Did I just say that?

    October 10, 2008 02:50 pm at 2:50 pm |
  16. Joe from Mahwah, NJ


    Just go back to Alaska....look out your window....wave at Russia...and take sniper shots at Putin's new tiger cub.

    That One 08

    October 10, 2008 02:51 pm at 2:51 pm |
  17. Beah

    Senator McCain, I lost all my respect for you. Your running mate is a total disgrace to women who are intelligent and understand what is at stake. Even some conservative women thinks that she's incapable to be VP. PALIN is as dumb as an oxymoron! Without her looks your ticket equals TITANIC!

    October 10, 2008 02:52 pm at 2:52 pm |
  18. Larry

    As long as there is one small chance that Palin could be next VP, the economy will suffer.Who in their right mind would invest one nickel in a country that has this hateful wingnut possibly in control of the free world.McCain and Palin is the scariest thing that could further hurt the economy. I do not no one investor that feels comfortable with the possibility that Palin could become next President.I also have not heard of one foreign investor that will re invest until they know there is no chance for Palin to become the leader of the free world.

    October 10, 2008 02:52 pm at 2:52 pm |
  19. Eric J.

    One House
    One Car
    One Spouse
    OBAMA 08

    Maybe if McCain and Cindy sell off some of their homes and fleet of cars we can stop this economic crises. I understand why McCain does not like Obama's tax plan, he and Cindy would have to pay more. So much for being patriot Huh..
    What about Palin, paling around with the Alaska independence party? is that a group who love's their country? What about McCain sitting on the board of a company with members who were dead smack in the middle of Iran -Contra scandal?
    Let be fair media..would someone please dig up the truth on that..

    October 10, 2008 02:54 pm at 2:54 pm |
  20. Darrell

    Not to worry I have seen every McCain, Palin speech and they have offered nothing to solve this problem. McCain has not had a new idea in quite sometime and it is actually a good idea for televison stations to not run the hate filled, lying, fraudulent speeches that Palin and McCain campaign run on. I am serious about this Ann, they really have had very little to offer and what little they have offered is not their own plans or ideas.You really have missed nothing

    October 10, 2008 02:57 pm at 2:57 pm |
  21. Jerry Atrick, New York

    Brian from Canada – your propaganda will not work. I guess that since you can see Alaska from your house you have contracted the scatterbrained syndrome.

    Attention New Yorkers: Today – 10/10 is the final day for registration. You can download forms from the internet. Fill, sign and have them postmarked by TODAY. Those in the city can go the Board of Elections Executive Office on Broadway to submit the form in person BY MIDNIGHT.

    October 10, 2008 02:58 pm at 2:58 pm |
  22. Bitter in Texas

    ...to Little, To Late. Lordy, I can't wait until I can vote early...I've had enough of McGeezer/McFallin.

    October 10, 2008 03:00 pm at 3:00 pm |
  23. hello

    At last one good thing came out from this candidate.
    I like the idea but I won't vote for you, just because you are too old and I don't want to give presidency to Hockey Mom.

    October 10, 2008 03:02 pm at 3:02 pm |
  24. Maddie, Hartford, Ct.

    So what is he going to pull out of his bag of tricks this time? A man with seven homes and thirteen cars can not really relate to the guy on Main Street. Is it a good idea? At this point...who knows?

    October 10, 2008 03:02 pm at 3:02 pm |
  25. robin

    McCain's 401(k) idea, again is one that only helps the rich. Under current law everyone is forced to start taking money out of tax qualified retirement plans and IRAs at age 70 1/2. Otherwise people could save tax deferred forever, and the government would never get its tax revenue. Most of us start drawing down on our retirement plans and IRAs after retirement, so the forced distribution at 70 1/2 is not an issue. But for those like McCain, who don't need the money to live on, then this is a good plan. He would let their money keep growing tax-free forever.

    October 10, 2008 03:02 pm at 3:02 pm |
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