Good day all. With all the talk about what will happen to the economy if the senile pedophile, Dementia Joe Biden, and his running mate, Heels Up Harris win, one thing hasn’t been talked about. What would happen to your 401K’s and IRA’s?
The short version is, nothing good. Without question, the market, which exploded upwards after the 2016 election, would crash almost as fast, and this would reduce the value of your retirement accounts. What isn’t being talked about is what changes to the laws Dementia Joe is proposing would do to them. Here are some of the details from The Washington Examiner:
Former Vice President Joe Biden’s presidential platform includes a tax proposal that could force some employers to abandon offering retirement options to workers, the industry is warning. The plan would dramatically change the incentive to save for retirement by replacing the current deferral system with a tax credit.
Most retirement plans, such as 401(k) plans and IRAs, allow taxpayers to delay paying taxes on contributions to accounts until they are retired. By suspending this tax until retirement, workers have been able to grow their nest eggs beyond what they would have been if taxes were paid in the year that the money was received.
There are people who have been putting money into the various retirement accounts for their entire working lives. Some actually were started by their parents when they were children. We are talking about some serious money here.
Biden would like to replace the current system with a tax credit. His campaign site does not lay out a rate for the credit, but it has been reported to be 26%.
Applying a 26% rate, the federal government would provide $26 for every $100 a worker invests in their retirement account. The impetus is to create a level playing field so all taxpayers receive the same tax benefit irrespective of their income or tax liability. For example, a $100 deposit would create a $26 tax credit independent of a taxpayer’s income or tax bracket.
Basically, instead of not paying any taxes on the money you put into an IRA, you will end up paying some 32%. There are a few other games the Biden Plan plays with your money.
Under the Biden plan, that $100 would be taxed in the year it was earned. So, a taxpayer in the 32% tax bracket would pay $32 in taxes, meaning that $68 would be invested in the retirement account. After adding the $26 from the federal government, the total amount invested would be $94. The money would be invested directly in the taxpayer’s retirement account to ensure it is used as intended.
So the Government will put money into your IRA? First, where are they getting it from? (Hint, look in a mirror), Second this turns the entire idea of the 401K and IRA plans on their heads.
Under the current system, $100 would have been invested in the retirement account.
Now one of the problems for this is what are called “Matching funds.” This is money your company puts into the account, along with managing it for you. A company would lose any tax benefits they now see under the Biden Plot Plan, so where is the incentive for them to either match your contribution or even have a plan in the first place?
Some retirement industry experts think Biden’s proposal could force some companies to abandon their retirement plans.
Brian Graff, chief executive officer at the American Retirement Association, cautioned that employers, who normally pay taxes in the upper brackets, could oppose Biden’s plan because they lose much of their tax benefit.
“What we’re worried about is if you are essentially reducing the tax benefit, it’s not going to be worth it for them to keep the plan going,” he said.
Employers who make contributions to a 401(k) must offer that same benefit to their employees. However, some of those bosses might not want to continue offering a 401(k) if their tax benefit is greatly reduced.
“If it’s not worth it to the owner, [why] bother with it anymore?” Graff said.
Exactly. Most companies would shut down their programs, and probably force their employees to convert to IRA accounts, not because they want to, but because Dementia Joe and the Democratic CommuNazis are forcing them to. Then there is another idea that the Democrats have had in the past. Seizing all the funds in a 401K or IRA, rolling them into the Social Insecurity system and looting it to their hearts desire.
I first heard about the Democrat’s plans to confiscate the private retirement accounts in the late 90’s. It went nowhere fast. Back then, there was about 2-5 trillion dollars in these accounts. Today, it’s probably closer to 20-30 trillion dollars. Think about that and just how the Progressives will use that money. Here’s a hint. It won’t be spent on anything you support.
Dementia Joe has already announced that he’s going to repeal the Trump tax cuts, and increase taxes by at least $4 trillion dollars. While he, or I should say his handlers, since the Senile Pedophile is to busy watching Cuties for the 30th time, claim these changes would be a benefit, in actual fact, it will be yet another move to destroy the United States and impoverish the American People. The choice is yours in November. (Unless the Democrats succeed in rigging the election of course, then the the “Choice will be made for you)
Thatisall
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