President Biden’s Proposed Changes to 401(k) Plans
23rd January 2021
Here’s a look at Biden’s proposed 401(k) changes:
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.
The devil is, of course, in the details.
The problem with most such ‘soak-the-rich’ plans is that ‘the rich’ wind up being anybody who makes more than, say, a waitress or a cab driver — i.e. it winds up being a ‘soak-the-middle-class’ scheme (although that’s not on your copy) — the reason being that in order to get all of the money the Democrats are wanting to spend on their pet schemes the amount they can bleed from the Real Rich is totally inadequate.