In a Biden/Harris Administration — 401k in America could be quite a bit different if the Democrats take power in America. According to a new proposed policy by Biden, low-income earners in America would see the most beneficial change from the 401k proposal become they in the end would get a refundable tax credit. Most tax experts as of this writing are credibly assuming that tax credit to be equal to about 26% of one’s retirement contribution regardless of their income as a whole.
Currently, Americans can take up to $19,500 in retirement contributions each year. Under the proposed system, that would effectively become the above tax credit. However, the plan and such a policy isn’t in the window of Biden ‘s would-be scope of powers — but instead has to be passed by Congress.