Skip to comments.Joe Biden Promises To End Traditional 401(k)-Style Retirement Savings Tax Benefits. What’s That Mean?
Posted on 10/08/2020 10:38:24 AM PDT by SJackson
Round about a month ago, I took a closer look at Joe Bidens 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 theyre 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 Savers 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 Wholly removing any tax benefit for retirement savings and provide a credit of 25% instead ...snip...
(Excerpt) Read more at forbes.com ...
Yeah, the looter class wants to get their hands on our retirements so they can stuff their own pockets with it.
The guy is nothing but a thief.
They’ve had their greedy eyes on our retirement savings for years.
I always say this over and over - name one Democrat whos ever had any job in the real world
Just one whos met a payroll
Just One whose even had a single employee!
It means say good bye to your 401k.
The only thing good about 401k’s is the matching funds from your employer.
He is being spoon-fed policies by his handlers!
Watch this video and see the real Joe Biden - he makes no sense whatsoever!!!
They floated the first balloon during the Clinton Administration.
Market staggers and collapses as Joe Biden claims victory.
In Argentina, 2008, the government seized everybody’s 401K plans and spent the money...................
Must confiscate them as well, Joe.
We know you want to.
Yep. They cleaned out SS and now want the trillions sitting in 401ks.
I am a year and half from being able to start getting my money out and this has occurred to me more than once.
If the people vote this guy in, they will get exactly what
Sadly, all those who didn’t vote for him will get exactly
what they didn’t deserve.
Not just the 401Ks, there’s lots of money in Roths.
I think that might be a “red line” for a lot of people.
Another part of the nightmare that is hiding in the weeds if these horrible people get elected. Today the carbon tax also seeped out. MSM is keeping a lid on all of it and all of the half informed people who think that nice man in the Biden ads is real.
As is typical, the process proposed by Biden and the dems is way too complicated for the average person to follow.
As I read it, the nuts and bolts is this: Your deferred compounding of investment in the 401k will be taxed. This means if you are going to be taxed at 15% upon withdrawl, that net tax rate will be significantly higher over the life of your investment.
The 401(k) is the ONLY way that middle class working families will be able to put enough away to have a decent retirement. Now, you will have to work longer to put away the same amount, and due to the lessened real compounding, if you are middle aged...you will NEVER grow at the rate high enough to hit your target.
I guess you can sign up for one of the 7.1 million new age tech jobs to work at night.
and the tax deferral
If Republicans brought up the danger to 401ks if the Democrats get control they will easily win the WH, House and come close to 60 in the Senate.
A few “Kiss your 401Ks good bye” commercials like the Throw Grandma off the Cliff SS commercials the Dems did would do it.
But for some reason they won’t, just like they will never bring up how Kamala git her start or all the kids Joe inappropriately touched.
I guess it’s more important to be gentlemanly and get invited to the Bloomberg cocktail parties then try and win and save the country.
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