Posted on 09/22/2020 2:06:39 PM PDT by Red in Blue PA
To equally incentivize savers regardless of what they earn, Biden proposes a credit of approximately 26% to replace the deduction savers get for putting money in a 401(k) plan, according to the Tax Policy Center’s analysis.
“The biggest thing that stands out to me, by contrast to other proposals, is that it limits the benefit for the highest earners and gives the benefit to the lowest earners,” said Jeffrey Levine, CPA and director of advanced planning at Buckingham Wealth Partners in Long Island, New York.
“It’s a true redistribution of wealth proposal,” he said.
(Excerpt) Read more at cnbc.com ...
You can fool people but you can't fool money.
True.
So what happens if everyone pulls their 401Ks and just takes the tax hit now?
That's about 8 trillion dollars taken out of the economy.
These types of plans are a temporary tax break, are taken as ordinary income, you get no lower cap gains rate no matter how long you hold the investments, the government shares your gains as a partner, you can’t deduct losses, or depreciation.
The Roth IRA and Roth 401k are better.
When I realized the limitations, I educated myself and then moved into investments with permanent tax breaks, cash flow, and good returns.
For the average person, who has no interest in becoming a better investor, The democraps have a plan for your money.
They Both political have always dreamed of taking it.
FIFY
“They want to take from those who worked hard and saved all their lives and give it to those who did nothing but binge-watch Netflix all day long with a bowl of nacho chips and a bag of marijuana.”
I have a sister in law who along with her hubby is a lib neer-do-well (both same age as me - mid 60’s). Neither one ever held down a job for long enough to accumulate any kind of wealth. Some little thing annoys them and they quit in a huff. She thinks I am “lucky” to have built up a nice nest egg for retirement. Her envy is exceeded only by her lack of personal responsibility and inability to act like an adult.
What "benefit" is he speaking of?
This is a deferred income plan. That means that for every dollar that I put into a 401(k), that's one dollar I don't have to spend on Starbucks, Nikes, or flat screen televisions today.
It's really a deferred gratification plan, ensuring that I have money for the 25 years after I leave the workforce, saved during the 35 years I was in the workforce. I'm still paying taxes on that money, just after I retire.
-PJ
As there’s the ~$20K limit on putting into a 401k it’s already structured to benefit the lower incomes. High earners have to do something else...
Overhaul = steal
When it involves democrats, it always means steal.
One reason I’ve steered away from Roth IRA.
Just had the feeling the gov. would screw with the tax laws and I’d end up paying tax twice on the money.
With a Biden/’rat plan the IRAs will be negative growth.
If we lose we are making major moves with the nest eggs because nothing will be safe. Nothing.
IIRC back during Clinton mister huckster Jesse Jackson was promoting a scheme that raided 401ks.
I'm "lucky" to have all that I have. Even though I have worked since I was 14, lived below my means and never took a sick day.
My longest vacation in 40+ years was three weeks and that was for my marriage and honeymoon.
The Dems raise the capital gains tax, the market goes down, and tax revenue goes down.
To restore lost revenue, the Dems get rid of the stepped-up basis for inherited stocks, tax dividends as ordinary income, impose a wealth tax (at first only on a few bezillionaires), and tax each stock market trade (at first by a small enough amount that it only affects automatic trading by algorithms). The market crashes.
At some point in this downward spiral, the pension funds are in trouble. So "to protect the retirement of American workers," the Dems federalize 401k and IRA accounts, replacing them with annuities guaranteed by the feds. The replacement amounts are based on the post-crash value of the accounts. As part of the process, the unfunded, unsustainable, unaffordable public employee pensions (IL, CA...) are brought into the federalized system.
Been saying all along - elect these dems and kiss your 401k’s, 403b’s, and IRA’s, goodbye.
Democrats are always stealing from everyone.
Yeah, I’ve already figured we need to start minimizing 401(k) holdings.
The S & P 500 may grow at 11%/yr but throw in inflation and the growth is more like 7-8%.
The pensions for teachers and other defacto gubmint employees are already in trouble in some (all?) Demwit single-party-states like Illinois and California. That conspiracy of Demagogic Party governors tried tanking the economy in order to get *more* federal money after the Tax Reform Act screwed up their subsidy games, and expected this President to fall for their sorry ****, so that the Partisan Media Shills could use *that* to criticize the tax cuts and reforms.
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