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President Biden’s Proposed Changes to 401(k) PlansThe 401(k) tax deduction could be replaced with a tax credit.
US News ^ | Jan. 22, 2021, at 12:55 p.m. | Rodney Brooks

Posted on 06/01/2021 6:02:13 AM PDT by DCBryan1

President Joe Biden has proposed changes to 401(k) retirement savings plans that will have a big impact on the tax break provided to 401(k) participants. If the Biden 401(k) plan were to become law, the tax deduction for contributing to a 401(k) would be replaced with a tax credit.

This 401(k) change would likely result in high earners getting less of a tax break on their 401(k) savings and low and middle earners getting a bigger tax benefit.

(Excerpt) Read more at money.usnews.com ...


TOPICS:
KEYWORDS: 401k; tax; taxes; wealthtransfer
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Here's a look at Biden's proposed 401(k) changes:

The 401(k) tax deduction would disappear.
Workers would instead get a tax credit for 401(k) contributions.
The tax advantage of contributing to a 401(k) would be reduced for higher earners and increase for low and middle earners.
The creation of an automatic 401(k) for workers without access to a workplace retirement account.
Allowing caregivers to make catch-up contributions to retirement accounts.

1 posted on 06/01/2021 6:02:13 AM PDT by DCBryan1
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To: DCBryan1

Older article but good refresher to visit your 401k administrator/broker just in case....


2 posted on 06/01/2021 6:02:53 AM PDT by DCBryan1 (Delete FB, TWTR, GOOGL, AMZN, YHOO, Gmail/chrome. Use Gab, Brave + DDG, VPN, Freerepublic )
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To: DCBryan1

Dems have been looking for many ways to infiltrate retirement savings. They’ll ease into it, then f us all.


3 posted on 06/01/2021 6:05:42 AM PDT by Blue Turtle
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To: DCBryan1

A tax by other means


4 posted on 06/01/2021 6:06:17 AM PDT by silverleaf (In a time of universal deceit, telling the truth is a revolutionary act)
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To: DCBryan1

Free college to the freeloaders and F#$% those who actually save and pay for college. That’s their goal.


5 posted on 06/01/2021 6:08:00 AM PDT by vespa300
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To: DCBryan1

The arrogant government feels it has the right to retroactively change the terms of this “benefit.” You cannot trust them to give you a “benefit.” If it’s a real benefit, they will soon take it away from you.


6 posted on 06/01/2021 6:08:35 AM PDT by I want the USA back (The reflectance of my epidermis does not give anyone the right to assume anything about me.)
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To: Blue Turtle

The largest pool of cash in the world is in retirement savings in the US. They’ll try to come for it.


7 posted on 06/01/2021 6:10:24 AM PDT by arkfreepdom
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To: Blue Turtle

Eventually, Democrats would like to take ccontrol of 401K type retirement plans. They would like to use the assets of the 401k and IRA accounts to shore up the Social Security system deficits.


8 posted on 06/01/2021 6:12:26 AM PDT by Dilbert San Diego
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; cardinal4; ColdOne; ...
This 401(k) change would likely result in high earners getting less of a tax break on their 401(k) savings and low and middle earners getting a bigger tax benefit.
IOW, those who don't actually make 401(k) contributions get zero tax break, and everyone making contributions gets smaller ones.

9 posted on 06/01/2021 6:13:10 AM PDT by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: DCBryan1

Well, the real question here is whether three halves of the deductions for passive income not definitely related to gross income is greater than one third the greater of taxes reclassified under high tax kickout or interest earned on private activity bonds, less of course the form 4797 long term suspended loss minus .15 of the allowable ordinary qualified gain after passive/at-risk limits. Finally, one always has to consider one’s qualified business income allocated to SSTB and whether that impacts the qualified dividend that didn’t meet required holding period, to say nothing of the section 179 carryover, let alone the allowable ordinary 1231 qualified gain after passive/at-risk limits.

And don’t even get me started on deductions for passive income not definitely related to gross income.

Yes, the tax code definitely needs to be more complicated than it already is.


10 posted on 06/01/2021 6:15:35 AM PDT by coloradan (They're not the mainstream media, they're the gaslight media. It's what they do. )
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To: arkfreepdom
Wait for revival of the talking about nationalizing 401ks. It was being proposed by Democrats under Obama.

I think that would be a red line for a lot of people, as in "you took my life savings, now I take it out of your hide".

11 posted on 06/01/2021 6:20:56 AM PDT by Tench_Coxe
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To: arkfreepdom
The largest pool of cash in the world is in retirement savings in the US. They’ll try to come for it.

Blacks need reparations. Handing them all of the 401(k) money would be a start. [/s]

12 posted on 06/01/2021 6:23:03 AM PDT by ClearCase_guy ("I see you did something -- why you so racist?")
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To: arkfreepdom

After inflation is done wrecking retirement funds there won’t be much left for the gubmint to steal.


13 posted on 06/01/2021 6:26:24 AM PDT by hardspunned (former GOP globalist stooge)
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To: DCBryan1

‘The tax advantage of contributing to a 401(k) would be reduced for higher earners and increase for low and middle earners.
The creation of an automatic 401(k) for workers without access to a workplace retirement account.’

My friends tell me where this is wrong. Anything to get those workers a $500k nest egg asap would be good. Didn’t read the article.


14 posted on 06/01/2021 6:28:14 AM PDT by DIRTYSECRET
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To: DCBryan1

About 5 years ago, the CA RATs floated something about getting rid of 401k.
This is their first step.


15 posted on 06/01/2021 6:30:58 AM PDT by Zathras
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To: DCBryan1

He has to get it to pass Congress. We’ll see.


16 posted on 06/01/2021 6:37:01 AM PDT by SoFloFreeper
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To: Tench_Coxe

One of the first things I did when I started my own company was set up a solo 401(k) plan and roll most of my previous retirement funds into it. I did this because I wanted to have more control over the money in case the government monkeys around with these 401(k) laws and regulations.


17 posted on 06/01/2021 6:38:17 AM PDT by Alberta's Child ("And once in a night I dreamed you were there; I canceled my flight from going nowhere.")
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To: DCBryan1

What about IRA’s?.......................


18 posted on 06/01/2021 6:39:22 AM PDT by Red Badger (Jesus said there is no marriage in Heaven. That's why they call it Heaven.....................)
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To: arkfreepdom

“They’ll try to come for it.”

They wont “try” they “will” come after it.


19 posted on 06/01/2021 6:39:53 AM PDT by crz
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To: vespa300

Commencement surprise: Wilberforce University cancels debt for graduating class Saturday:

https://www.wdtn.com/news/local-news/commencement-surprise-wilberforce-university-cancels-debt-for-graduating-class-saturday/


20 posted on 06/01/2021 6:40:23 AM PDT by Red Badger (Jesus said there is no marriage in Heaven. That's why they call it Heaven.....................)
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