Get ready for what is coming for your 401K when the fake president takes the power

Since we will get the fake president into power soon, from now on, I'll share some interesting information regarding what may happen financially when the cheater starts to work to steal our money after stealing our votes. Here is one regarding 401K per his current policy. I guess anyone who supports him should be happy to see your dream become realized.....More to come.

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Excerpt from 5 Min. Forecast

Now... with Democrats soon to control the White House, House and Senate… we turn our attention to the prospects for your 401(k).

• The short version is that Biden wants to apply a wicked-complex formula that will limit the 401(k)'s advantages once you get into the highest tax brackets.

From Biden's campaign website: "Current tax benefits for retirement savings provide upper-income families with a significant tax break, while providing a limited benefit for low- and middle-income workers."

To remedy that perceived imbalance, the current deduction for 401(k) contributions would be turned into a tax credit of 26%.

Yeah, we know. Clear as mud. And even that thumbnail sketch is oversimplifying, but let's not get too deep in the weeds. Let's just break it down like so.

Higher earner, current system: A single person makes $100,000 and sets aside 10% in a 401(k). That's $10,000 in retirement savings. At a 24% marginal tax rate, this individual lops $2,400 off his or her tax bill.

Lower earner, current system: A single person makes $40,000 and also sets aside 10%. That's $4,000 in retirement savings. Because this individual is in the 12% tax bracket, the tax savings work out to only $480.

Higher earner, Biden proposal: The single person still makes $100,000 and still sets aside 10%, or $10,000. A 26% credit on that $10,000 translates to a $2,600 tax savings.

Lower earner, Biden proposal: Again, we're talking about a single person making $40,000 and setting aside 10%, or $4,000. A 26% credit on that $4,000 translates to $1,040 in tax savings.

So far, so good. Everyone's better off, and the lower earner substantially so. But hold on...

• "It's a true redistribution-of-wealth proposal," CPA Jeffrey Levine told CNBC last fall.

See, Team Biden is keen to keep the proposal "revenue neutral" — that is, Uncle Sam's total tax revenue won't take a hit.

To meet that goal, there's definitely a soak-the-rich angle to the proposal once you leave the 24% tax bracket and enter the 32% bracket. For 2021, that's $164,926 of taxable income for singles and $329,851 for couples.

So let's take the example of a single taxpayer making $175,000 and setting aside 10%, or $17,500. Under the current system, that translates to a tax savings of $5,600. But under the Biden plan, the tax savings is only $4,550. Stealth tax increase.

The numbers only get worse as you climb into the 35% and 37% tax brackets… and let's not forget Biden wants to raise the top rate to 39.6% on incomes over $400,000. (His campaign website was never clear on whether that was single or joint returns.)

To be clear, these are all ballpark numbers. There are any number of permutations at work that would turn our 5 Mins. into an hours-long discourse. (For instance: Under the current system, 401(k) contributions lower your taxable income dollar for dollar. So under the Biden plan, everyone's taxable income ends up rising.)