(Biden’s 401K Plans) Joe Biden’s Plans for Your 401K Explained With Examples! #Retirement #401K #Biden #Investing
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⌚ Time Stamps so you can jump to any point in the video
►0:48 – 4:22 Biden’s goals for the 401(K) and how the 401(K) works at the moment
►4:23 – 10:53 Example 1 – High Income earner vs low income earner under current plan and then compared under Biden’s 401(K) plan
►10:54 Example 2 – When a person will pay MORE TAX under Biden’s 401(K) plan.
►14:00 Final thoughts and what people might do go going forward instead of investing in a 401(K).
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Joe Biden has promised to make a lot of changes if he becomes president, and this includes changes to the tax code that might affect your 401K plan. There are several proposed changes that could affect retirement savings accounts like 401Ks, and it’s essential to understand what they might mean for you.
One of Biden’s plans for 401Ks is to adjust the current tax deduction that people receive when they contribute to their retirement plans. Currently, the contributions you make to your 401K are deducted from your taxable income, which means that you pay less in taxes that year. Instead of this system, Biden would like to offer a flat tax credit to all taxpayers regardless of their income level.
For example, let’s say you contribute $5,000 to your 401K each year and you’re in the 22% tax bracket. Under the current system, you would save $1,100 in taxes each year, but under Biden’s proposed system where everyone would receive a flat tax credit, you would receive a tax credit of $1,500. While this may seem like a good deal, it could hurt some high earners who save the most in their 401Ks.
Biden also proposes to make it easier for small businesses to offer 401K plans to their employees. Currently, many small business owners find it challenging to set up and administer a 401K plan, which means their employees may not have access to a retirement savings account. Biden proposes a tax credit for small businesses that establish 401K plans, which could encourage more businesses to offer retirement benefits.
Another change Biden proposes is to end the practice of offering tax breaks to high earners who contribute to their 401Ks. Currently, those who earn more than $300,000 per year can benefit from an additional tax deduction when they contribute to their plans. Biden proposes to eliminate this tax break, which would generate additional revenue for the government that could be used to fund other programs.
Finally, Biden proposes to offer a new retirement savings option called a “public option.” This would be a government-run savings account that workers could contribute to if they don’t have access to a 401K or another retirement savings plan through their employer. This option would be available to everyone, regardless of income level, and could be a helpful tool for those who currently do not have access to a retirement savings account.
Overall, Joe Biden’s plans for 401Ks could have a significant impact on how Americans save for retirement. While some of his proposals could benefit low and middle-income earners, high earners who currently benefit from tax deductions for their contributions may find themselves paying more in taxes. It’s important to consider all of Biden’s proposals and how they could affect your retirement planning before the election in November.
⌚ Time Stamps so you can jump to any point in the video
►0:48 – 4:22 Biden's goals for the 401(K) and how the 401(K) works at the moment
►4:23 – 10:53 Example 1 – High Income earner vs low income earner under current plan and then compared under Biden's 401(K) plan
►10:54 Example 2 – When a person will pay MORE TAX under Biden's 401(K) plan.
►14:00 Final thoughts and what people might do go going forward instead of investing in a 401(K).
IF THE GOV. WANTED TO HELP PEOPLE.? ALL THEY HAD TO DO IS TAKE THE TRILLIONS OF DOLLARS AND GIVE TO HIS CONSTITUENTS. GIDEN AND THE GOV. IS STEALONG OFF THE AMERICAN PEOPLE. IF HE IMPLANTMENTS THIS STUPID PROGRAM. ONCE THEY GET YOU LOCK IN TO THIS PRPGRAM ? THE GOV. COULD CHANGE THEIR PROGRAM TO HURT PEOPLE. GOV. IS NOT THERE FOR YOU. THEIR THERE FOR THEM AND THEIR RICH FRIENDS. LIVE OFF THE LAND , NOT GOV,
stupid. how about they just stop spending needlessly?
piden suck's !!
Just who are this goon's Puppet Masters?
Screw that. Will not contribute if this goes through. Middle class not only continue get screwed but now they tax the anal lube too!
A government retirement plan……. Sounds familiar.
It seems like all the current administration has been trying to do is find new ways to tax everything without increasing income taxes.
This is another fine example of hiding under the disguise of "Helping the Poor" increased taxes through decreased benefits. Because lets be honest someone making enough money to get taxed 37% can only contribute $20,500 to their 401k as of 2022. They aren't dropping down to a 30% tax benefit by contributing about 5% of their income to a 401k.
If Biden came up with it its garbage
So, if the Standard deduction for Taxpayers gets cut in half does his/her AGI go up by $6,200 thus increasing the Tax Liability?
Great job showing how this affects the average person. I'm okay with Biden's plan if it truly only affects the rich the problem as you have shown is some of his proposals hit average earners. I make 80k a year which sounds like a lot but the cost of living in the city is so high I can barely afford a small condo/economy car. I don't feel rich and when I hear that Biden's tax proposals will make my life harder I'm not to happy with democrats. I have a roth but the annual contribution limit has not kept up with inflation and I have to invest in other things as well.
I've been hoping and praying that everyone who voted for this foolishness will literally lose everything they have as payback for this plumb malfeasance of a presidency!!!! That was totally unconscionable to punish our country with such a heinous act as putting this bunch of lawless renegades at the center power!!!!! These people knew exactly what they were voting for because every single one of them had been clearly warned in advance……..I don't have a speck of sympathy for these goofy screwball nutcases!!!!!!
Hi, Which software do you use to do your clients taxes?
so if you at the pinnacle of the tax bracket making 400k 0r 200K a year paying 37% the stupidest statement of the year hopefully your earning less so go into a lower tax bracket how foolish if i was in that 37% tax bracket i will happily pay the government the 37% and still buy & own what ever the fuck i want to. i need the police keeping the piece i love that the poor are rounded up and have to struggle in a low rent section of the state and they have to deal with the drug addicts etc life is really good at 37%
Very well done.
Don't believe anything shit for brains tells you, You do , You will be screwed
Over 250,000 in your 401k will net you a 37% tax on it SMH
So Biden wants us to pay more.
This nightmare that's being played on front of us daily will come to an end very soon this whole thing will end way before the 2024 elections and if you don't realize that you need to keep doing your research to figure out what is truly going on here because nothing is as it seems
Best financial future for all Americans is any Financial plans that have nothing to do with our government that is in power right now, everything that is said coming from our government right now is a complete lie don't trust any of it and soon we will all have the proof of just how corrupt they are and it has been!
Imagine my surprise, a tax proposal from Biden that does end up costing households under $400k more in taxes.
If you just do the exact opposite of what Biden does or thinks you will be 100% on the right side of everything !!
soooo just continue contributing to my Roth as I been doing lol.
do a video on when social security is gonna go bankrupt! that's probably one of the reasons they're doing this.
Is Biden's proposal only for 401k pretax contributions? Or will extend to SEP, IRA, SIMPLE, DB plans, ect?
I don't have 401k as an option. So I'll just lose the standard deduction
What happens if your not working at 59 1/2 and your looking to pull out the money out of a traditional Ira. Would you know the amount of tax that would be owed.?
I'm apparently on the cusp of paying more money on my 401k taxes thanks to sleepy joe. I'll just add that to all of the other taxes he and the left are proposing, add that burden to the outrageous inflation, and plan on working until I die.
$3418/ $50K = $6.83 tax per $100 income
$2368/ $50K = $4.73 tax per $100 income
$15590/ $120K = $12.99 tax per $100 income
$15224/ $120K = $12.68 tax per $100 income
But it does not fix the problem, because living cost does not scale with income. My income is double yours, but my annual expense is the same as yours. Over the long run, I am still the winner. But at the same time, you cannot charge the wealthy more or force them to pay more tax because we are equal. You cannot sacrifice the human right of the wealthy to benefit the poor.
The root of income inequality is lifestyle and habits. There are thousands of successful immigrants who came to the US with nothing and achieved their success through hard-work and righteous motivation. If someone cannot speak English with perfect accent can be a multi-millionaire in the US, no body should complain about income inequality
Thank’s for the info.
It seems is a better plan. I am not an expert about taxes but it helps poor people to have a better retirement according to your analysis. I do not have much knowledge about finances, taxes and investments but you make it sound is okay.
Thanks for the analysis bro. I got a question.
How high income are you referring too?
How much per year?