Biden and Kamala want to dramatically change 401ks. I can't believe this isn't in the news.
A couple of excerpts below. Emphasis mine below.
https://www.bloomberg.com/opinion/a...-does-the-opposite?srnd=premium&sref=fCtSisie
Biden Plan to Improve the 401(k) Does the Opposite
Once again, younger median-wage workers would be penalized for investing.
I’ve written a couple of recent columns found
here and
here on fixes needed to restore the value of 401(k) and other deferred tax retirement plans for young median-wage workers. The presidential campaign of Joe Biden and Kamala Harris has a proposal aimed at that issue. It’s a step almost exactly in the wrong direction.
Under current policy, standard deferred tax retirement plans, including 401(k)s, IRAs and other variants, are taxed at distribution time rather than contribution time.
1 Biden-Harris propose to tax the plans at both contribution and distribution, and to offer a refundable tax credit to make up for the double taxation. The idea is justified on the basis of fairness, since avoiding tax at contribution time is worth only 12% to most middle-income workers, but 37% for the highest-income workers.