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Joe Biden Promises To End Traditional 401(k)-Style Retirement Savings Tax Benefits. What’s That Mean?
Forbes ^ | August 25, 2020 | Elizabeth Bauer

Posted on 08/25/2020 2:03:44 PM PDT by karpov

Round about a month ago, I took a closer look at Joe Biden’s retirement-related policy proposals, or, more specifically, those of the “Unity Task Force,” which had just released its final document.

One of the items in that document and on the Biden campaign website is a promise to “equalize the network of retirement saving tax breaks” — a proposal that generally translates to eliminating the tax advantages currently enjoyed by retirement savings accounts and replacing them with a “credit” or “match.” The idea is that the tax advantages, or “tax expenditures,” as they’re called, disproportionately accrue to relatively higher earners, and the hope of a change is to provide benefits in equal measure to all income groups.

But how this translates in practice is not clear. An article at Roll Call this morning picked up on the proposal, as did Courthouse News, but neither had more detail, referencing only a 2014 Urban Institute/Tax Policy Center proposal, which provided various hypothetical alternatives.

So what did that proposal suggest? It included a variety of options, including

Reducing total available pre-tax savings (employer and employee) from (at the time) $51,000 to only the lesser of $20,000 or 20% of pay;

Expanding the currently relatively-small “Saver’s Credit” (equal to 50% of the first $2,000 in retirement savings, only for relatively lower earners, up to $$19,500 for singles, $39,000 for couples; and phasing out quickly, to 20%, 10%, and ultimately nothing for singles with $32,500/couples with $65,000 in income) to stay at 50% for higher earners and phase out in a much more gradual manner instead; or

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Front Page News; Politics/Elections; US: California; US: Delaware
KEYWORDS: 401k; biden; biden2020; bidenagenda; california; clowncar; delaware; incometaxes; india; jamaica; joebiden; joeclowncarbiden; kamalaharris; retirement; taxcutsandjobsact; taxes; taxreform; tcja
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; cardinal4; ColdOne; ...
cdfvxbvcvbcvbcv

81 posted on 08/25/2020 6:55:37 PM PDT by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: karpov

No one should be surprised by this. The more people who depend upon the government to live, the better, as far as any democratic socialist is concerned.

Social security has always been welfare for old folks.


82 posted on 08/25/2020 7:16:23 PM PDT by zeugma (Stop deluding yourself that America is still a free country.)
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To: LostInBayport
The same way they sold the income tax. "Only the rich will pay" mm-hmm.

Exactly. Most people have no idea what income tax was like when it first started out. Do yourself a favor and fill out the 1913 1040 form. Even with our horribly inflated currency, I'd rather have that form and tables than the modern one.

83 posted on 08/25/2020 7:24:40 PM PDT by zeugma (Stop deluding yourself that America is still a free country.)
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To: karpov

Your retirement savings would be taken and replaced with a government IOU


84 posted on 08/25/2020 7:52:31 PM PDT by The Great RJ ("Socialists are happy until they run out of other people's money." Margaret Thatcher)
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To: karpov

bump for later


85 posted on 08/25/2020 9:22:27 PM PDT by GOPJ (The Democrat Convention Theme was suppose to be 'Chaos Under Trump' - riots are backfiring ...)
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To: karpov

401k’s are the middle class’s govt pension....take it away and the govt employees should take a huge hit in their pensions as well....


86 posted on 08/25/2020 9:23:58 PM PDT by cherry
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To: karpov

Biden wants to tax your 401(k) to pay for reparations, pass it on.


87 posted on 08/25/2020 11:09:46 PM PDT by Mozzafiato
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To: GrandJediMasterYoda
Anyone listen to Mark Levin the other day, he had people who are going to vote for Biden call in and he asked them why, and holy smoke, the reasons were so freakin naive it was unreal. One guy said because Biden will bring people together- HAH another said because Biden is against hunting, and one said because he will get rid of CO2. They have NO idea what’s in store for them if he wins do they.

I find it hard to believe when stations like him have people call in like that. I mean, they're that naive, yet they're listening to Levin? And listening enough to actually take the time and effort to call in..?
88 posted on 08/26/2020 5:39:43 AM PDT by Svartalfiar
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To: karpov

FO BIDEN


89 posted on 08/26/2020 8:38:44 AM PDT by rhubarbk (Black Olives Matter)
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To: EvilCapitalist
I hope Mark gave them an education

The Great One tried, the question is did it get through to their brain . . . doubtful.
90 posted on 08/26/2020 8:48:02 AM PDT by rhubarbk (Black Olives Matter)
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To: karpov

Bookmark


91 posted on 08/26/2020 4:39:55 PM PDT by NetAddicted (Just looking)
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To: DIRTYSECRET

Remember, these proposals are from a man working in the government for 50 yrs and is now a multi-millionaire. Why doesn’t the lsm investigate the corruption to have that mush from Congressional salaries and being VP for 8 years.


92 posted on 08/27/2020 10:11:48 AM PDT by Aggie65
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To: karpov

The government has been looking to get its hands on every one’s 401K ever since it was invented.
They would spend it and promise to pay it back out of future Revenue, just like Social Security, if they could get away with it.


93 posted on 08/27/2020 5:11:19 PM PDT by Mr. K (No consequence of repealing obamacare is worse than obamacare itself)
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To: karpov; abb

The dems have been pussy footing around with eventually killing our wonderful 401k system.


94 posted on 08/28/2020 5:44:17 PM PDT by Grampa Dave (11/3/2020! VOTE FOR JOBS! NOT RIOTING BLM/ANTIFA/DEM/MOBS! POLICE FOR US, NOT JUST FOR THE ELITE!")
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To: The_Media_never_lie

C’mon man!


95 posted on 08/29/2020 6:25:06 PM PDT by Still Thinking (Freedom is NOT a loophole!)
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To: JohnBrowdie

This will be marketed by Joe Biden’s democrats as: “the stock market is way to risky for people to invest their retirements in” so, instead Joe Biden will manage it for you. Instead of getting 12-15% per year returns, which is quite possible, in Joe’s plan you will get 2%, with the 10-13% you would have earned going to Joe’s favorite groups of needy people.


96 posted on 08/29/2020 8:16:45 PM PDT by The_Media_never_lie ( DeBlasio is the killer of NYC!)
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To: karpov

These Commie bastards want to take over your 401(k), pension plans (except public ones) and IRAs

They’ve bandied proposals for years and little attention has been paid to them

Time to WAKE UP

They are EVIL personified


97 posted on 09/15/2020 7:58:46 AM PDT by A_Former_Democrat (See George Fetanyl's mile-long Rap Sheet . . . TAG PedoJoe with "DEFUND the POLICE")
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To: karpov

AOC and Bernie Bro wants to “equalize the network of retirement saving tax breaks”? What could that possibly mean? /s


98 posted on 09/15/2020 8:09:42 AM PDT by Chgogal (ALL lives matter. If you disagree with me, YOU are the racist.)
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To: Chgogal

wants = want


99 posted on 09/15/2020 8:10:31 AM PDT by Chgogal (ALL lives matter. If you disagree with me, YOU are the racist.)
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To: GrandJediMasterYoda; All

“They have NO idea what’s in store for them if he wins do they.”

What makes you think a Biden voter has ANY skin the game concerning a 401K plan, savings of any kind, assets of any kind and isn’t still living in Mom’s basement?

“Joe Biden! He’s just like me! A basement dweller!”

*SNORT*


100 posted on 09/15/2020 8:13:28 AM PDT by Diana in Wisconsin (I don't have 'hobbies.' I'm developing a robust post-Apocalyptic skill set.)
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