Hugh,
I found the article from Will [1] to be very accurate, creative, and informative. His information was spot-on, although I would add a few comments:
- Disclosure: I have an employer-matching 401k plan and a Roth IRA that I rolled over from a previous job (paid the tax on the conversion).
- If you think the government will seize the assets, then it really does not matter what type of plan you have; they will follow the paper trail.
- A more realistic scenario would be a hefty tax on retirement plan, since the funds are pretax contributions (excluding Roth).
- The threat of confiscation would destroy the markets, so any plan to do so would be slow. If things keep changing then take out your cash and pay the fine.
A wise man said, “You will not go broke taking a gain.” Holding out forever to avoid paying taxes on a gain can be a bad idea. I converted a 401k to a Roth because I can take the initial investment back out without a penalty. You might be able to do more on your own with the cash. – O.M.