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 ...
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.
Older article but good refresher to visit your 401k administrator/broker just in case....
Dems have been looking for many ways to infiltrate retirement savings. They’ll ease into it, then f us all.
A tax by other means
Free college to the freeloaders and F#$% those who actually save and pay for college. That’s their goal.
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.
The largest pool of cash in the world is in retirement savings in the US. They’ll try to come for it.
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.
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.
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.
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".
Blacks need reparations. Handing them all of the 401(k) money would be a start. [/s]
After inflation is done wrecking retirement funds there won’t be much left for the gubmint to steal.
‘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.
About 5 years ago, the CA RATs floated something about getting rid of 401k.
This is their first step.
He has to get it to pass Congress. We’ll see.
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.
What about IRA’s?.......................
“They’ll try to come for it.”
They wont “try” they “will” come after it.
Commencement surprise: Wilberforce University cancels debt for graduating class Saturday:
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