Biden retirement proposal would overhaul traditional 401(k) tax benefits

[desiboys]

Biden has vowed to convert the current deductibility of traditional retirement contributions into matching refundable credits for 401(k)s, IRAs and others.

Under current law, workers contribute pre-tax dollars to the accounts, reducing their annual taxable income. (When the funds are eventually withdrawn in retirement, that money is taxed). But the system tends to disproportionately benefit wealthier earners since deductions are more valuable the higher one's income bracket is.

For instance, a taxpayer in the top income bracket would receive a $37 benefit for every $100 contributed to a retirement account. By comparison, a taxpayer in the bottom bracket would get just a $10 benefit in exchange for the same $100 contribution.

But Biden has proposed eliminating such deductions and instead replacing them with flat tax credits for each dollar saved, as first reported by Roll Call. The campaign has not specified with the percentage would be, but the Tax Foundation estimated that a 26% credit would be roughly revenue-neutral, something the Biden campaign is aiming for.

[Catalpha]

It's a bad idea. 

[tom bhayya]

1 minute ago, Catalpha said:

It's a bad idea. 

Agreed anything coming from dems is bad idea

[desiboys]

2 minutes ago, Catalpha said:

It's a bad idea. 

biden elect aythe working class people ki tax increase and 401k reduced deductions. 

[Catalpha]

8 minutes ago, tom bhayya said:

Agreed anything coming from dems is bad idea

401k max out chesevallaki it's not a good thing no?

[JonSnowUSA]

leave about money.. full discrimaination, hatred perugutadi thatha malli vaste.. ma vullo 17 yella kurradu mugurini champi padesadu protest chese vallani.. GC and extra money evedaiki kavali.. peaceful life important ippudaithe. Aaa kurradiki full support ikkada.

[Catalpha]

1 minute ago, JonSnowUSA said:

leave about money.. full discrimaination, hatred perugutadi thatha malli vaste.. ma vullo 17 yella kurradu mugurini champi padesadu protest chese vallani.. GC and extra money evedaiki kavali.. peaceful life important ippudaithe. Aaa kurradiki full support ikkada.

Saying all Trump supporters are racist is like saying all Biden supporters are looters. 

[desiboys]

12 minutes ago, JonSnowUSA said:

leave about money.. full discrimaination, hatred perugutadi thatha malli vaste.. ma vullo 17 yella kurradu mugurini champi padesadu protest chese vallani.. GC and extra money evedaiki kavali.. peaceful life important ippudaithe. Aaa kurradiki full support ikkada.

biden thatha kante pedda racist evaraina untara man ? literal ga nuvvu naku vote veyyakunte nuvvu black kadu annadu. 

[Catalpha]

1 hour ago, desiboys said:

biden thatha kante pedda racist evaraina untara man ? literal ga nuvvu naku vote veyyakunte nuvvu black kadu annadu. 

Ah?

[ShruteSastry]

2 hours ago, JonSnowUSA said:

leave about money.. full discrimaination, hatred perugutadi thatha malli vaste.. ma vullo 17 yella kurradu mugurini champi padesadu protest chese vallani.. GC and extra money evedaiki kavali.. peaceful life important ippudaithe. Aaa kurradiki full support ikkada.

Self Protection adhi, tappu ledu.

[Deadp0ol2]

Lol...biden thata endi ee pichi panulu

[tom bhayya]

3 hours ago, Catalpha said:

401k max out chesevallaki it's not a good thing no?

How enlighten me? 

[Catalpha]

1 minute ago, tom bhayya said:

How enlighten me? 

401k max out chesaka net income is taxable no, let's say you also contribute towards IRA, and total contributions are more than 26% of your income. Then you will pay more taxes than before, just because you're contributing more towards retirement account. So people will stop contributing to IRA because there is no tax benefit to increasing IRA contribution. 

[tom bhayya]

7 minutes ago, Catalpha said:

401k max out chesaka net income is taxable no, let's say you also contribute towards IRA, and total contributions are more than 26% of your income. Then you will pay more taxes than before, just because you're contributing more towards retirement account. So people will stop contributing to IRA because there is no tax benefit to increasing IRA contribution. 

There is a limit on pretax contributions kadha so it doesn’t matter 

[Catalpha]

Just now, tom bhayya said:

There is a limit on pretax contributions kadha so it doesn’t matter 

Uncle, 80k sampadinche vadiki 19.5k contribution towards 401k, 6.5k towards IRA kalipi, 32% income can be untaxable if it is contributed towards retirement accounts. Kani ippudu people will stop contributing to IRA since there is no tax benefit to increasing contribution.