Targeting Your 401(k)

You may have heard about Argentina's plan to nationalize private retirement accounts. Some Democrats on Capitol Hill are inspired, and with their big election victory they may get the chance to test Peronist ideas in America.

Meet Congressmen George Miller and Jim McDermott, who are eager to change the way Americans save for their golden years. They'll also be powerbrokers in the next Congress. Mr. Miller, who came in with the Class of 1974 from California, chairs the House Education and Labor Committee. Mr. McDermott, who has represented Seattle the past two decades, runs a House Ways and Means subcommittee on income security and family support.

Before Election Day, the Congressmen began to target the $3 trillion in 401(k) accounts held by about 60% of Americans. Mr. Miller called the system "an inadequate vehicle" that "has not been terribly successful" in encouraging retirement savings. He wants a "wholesale re-examination" of pensions.

Just what alternative these Democrats support is unclear, and nothing has been formally proposed beyond Mr. Miller's plan to make the system "more transparent," reduce fees charged by the money managers, and suspend the tax penalty for seniors over 70 who don't take the "required minimum" withdrawal from their account, regardless of the market situation.