Biden's 401k changes

[Patriotsfatboy1 1,432]

Just now, posty said:

I thought we were all filthy rich, so why should any of us care about 401(k) and retirement?

I was going to post that in the OP, but skipped it. This group is all 1%'ers anyway.

[Gladiators 1,903]

Just now, posty said:

I thought we were all filthy rich, so why should any of us care about 401(k) and retirement?

We are and want to remain filthy rich.  HTH

[Cdub100 3,369]

Just now, posty said:

I thought we were all filthy rich, so why should any of us care about 401(k) and retirement?

Those are good tax shelters. It's not how much you earn, but how much you keep.

[TBayXXXVII 2,107]

1 minute ago, Patriotsfatboy1 said:

You might want to delve a little deeper into your plan. Many plans allow you to invest in funds just like Vanguard or Fidelity. In fact many have those exact funds and you decide where they go. My 401k actually has grown more in the last 5 years (16% annually) than my brokerage account (12% annually) which is managed. 

Also, only about half (51%) of employers have a match according to this article: How Much Do Companies Typically Match on 401(k) in 2020? | MyUbiquity.com

Yeah, there could be more options, I just don't know enough about that stuff.  I just let the people who know what they're doing to do their thing.  I can't really complain with the results.  Mine jumped quite a bit the last few years as well, that should be no surprise.  Just like it shouldn't be a surprise that it sucked previously.  With the same mindset in the WH now as prior years, I expect little growth over the next 4.

Sure, about half NOW... 10 and 15 years ago, it was a lot higher than that.  I remember in 2007 the UBS people (the ones doing our 401), gave us some info that only about 40% of employers even offer a 401, but those who do over 80% made some kind of a contribution.  At the time, my company did 3% for 3%.  I know plenty of people who in the last 10 years, their employer eliminated their contribution... but some came back in the last few.  I mean, that shouldn't be a surprise to anyone.

[nobody 2,032]

10 minutes ago, cmh6476 said:

ideally, this would be great.  How realistic is it?

Sounds like a personal problem.  I shouldn't have to talk people in to being smart.

[RaiderHaters Revenge 3,566]

6 minutes ago, MTSkiBum said:

 

My company matches 100% up to 6% + they add some profit sharing into the 401k that can be a few percent more. Although the last few years we have not gotten that and I do not expect to get it this year or next year.

thats what mine did too, it was awesome

people asked me why I always did aggressive even though my age group was recommending more stable investments

and I was like UMMMM I am already getting 100% on my money, I dont care if I may lose 12%, I am free rolling go big

 

 

[nobody 2,032]

13 minutes ago, TimmySmith said:

Without investors contributing to SS, no money would go into the pot. 

Yeah that would tear down the whole ponzi scheme.

[Patriotsfatboy1 1,432]

2 minutes ago, TBayXXXVII said:

Yeah, there could be more options, I just don't know enough about that stuff.  I just let the people who know what they're doing to do their thing.  I can't really complain with the results.  Mine jumped quite a bit the last few years as well, that should be no surprise.  Just like it shouldn't be a surprise that it sucked previously.  With the same mindset in the WH now as prior years, I expect little growth over the next 4.

Sure, about half NOW... 10 and 15 years ago, it was a lot higher than that.  I remember in 2007 the UBS people (the ones doing our 401), gave us some info that only about 40% of employers even offer a 401, but those who do over 80% made some kind of a contribution.  At the time, my company did 3% for 3%.  I know plenty of people who in the last 10 years, their employer eliminated their contribution... but some came back in the last few.  I mean, that shouldn't be a surprise to anyone.

I would at least take a look and see where your money is being invested (what funds, aggressive/risk, etc.) and perhaps make an adjustment or two. Over time, you can have a portfolio that is not as diversified as you would like and could have some risk that you weren't aware of. 

Sometimes we hang onto dogs that we shouldn't. I had some stocks and funds in my brokerage account that I thought were treating me well. Decent return. However, when I compared them to others in the same class, I was missing out on a lot. Made some adjustments and have done considerably better. Just need to remind yourself to review it every once in a while. 

[TheNewGirl 1,020]

So I can't read the article, it's behind a pay wall or some crap. Can someone dumb down the article and plan? 

At my work, I can contribute up to 25% of my salary, my company matches 100% up to 6%. 

But apparently, if you make more than $163k it's a tax increase? 

 

Thanks if someone can explain it to me. 

[TBayXXXVII 2,107]

3 minutes ago, RaiderHaters Revenge said:

thats what mine did too, it was awesome

people asked me why I always did aggressive even though my age group was recommending more stable investments

and I was like UMMMM I am already getting 100% on my money, I dont care if I may lose 12%, I am free rolling go big

 

 

My cousin works for Vanguard.  He told me to put in the most I can that gets the max employer contribution... but that's it.  So when my employer matched up to 3%, that's what I did.  When they went to 3% to 6%, I went up to 6%.

[Gutterboys Flip Flops 94]

Buyers remorse yet idiots?

[TBayXXXVII 2,107]

1 minute ago, Patriotsfatboy1 said:

I would at least take a look and see where your money is being invested (what funds, aggressive/risk, etc.) and perhaps make an adjustment or two. Over time, you can have a portfolio that is not as diversified as you would like and could have some risk that you weren't aware of. 

Sometimes we hang onto dogs that we shouldn't. I had some stocks and funds in my brokerage account that I thought were treating me well. Decent return. However, when I compared them to others in the same class, I was missing out on a lot. Made some adjustments and have done considerably better. Just need to remind yourself to review it every once in a while. 

That's a good idea.  I'll have to do that.  We usually have our people come around in April.  I'll get in touch with my cousin (works for Vanguard).  I'll have him see if my current plan is the best one to have.  My company uses UBS, they claim that they're giving us the best possible plans available.  But, you never know.

[RaiderHaters Revenge 3,566]

2 minutes ago, TBayXXXVII said:

My cousin works for Vanguard.  He told me to put in the most I can that gets the max employer contribution... but that's it.  So when my employer matched up to 3%, that's what I did.  When they went to 3% to 6%, I went up to 6%.

yep we got 100% up to 6% it was great, best benefit we had, also could take interest free loans on it

 

[TBayXXXVII 2,107]

Just now, Gutterboys Flip Flops said:

Buyers remorse yet idiots?

I don't know if this is a good thing or a bad thing.  I make $84k a year, so I'm not going to get burned from a personal standpoint.  What I don't know is what the ancillary effects will be.  It kind of looks like a tax on the middle class and a tax break on the lower class who likely don't even have a 401.  I'm even more willing to bet that the people who don't have one, who are in the lower class, won't take advantage of the opportunity that they're being given.

[TBayXXXVII 2,107]

2 minutes ago, RaiderHaters Revenge said:

yep we got 100% up to 6% it was great, best benefit we had, also could take interest free loans on it

 

That's a sweet deal.

[TheNewGirl 1,020]

Just now, TBayXXXVII said:

I don't know if this is a good thing or a bad thing.  I make $84k a year, so I'm not going to get burned from a personal standpoint.  What I don't know is what the ancillary effects will be.  It kind of looks like a tax on the middle class and a tax break on the lower class who likely don't even have a 401.  I'm even more willing to bet that the people who don't have one, who are in the lower class, won't take advantage of the opportunity that they're being given.

Yeah, it's not like they are going to be investing that money or saving for retirement.  They will just spend it somewhere else. 

[Hawkeye21 1,848]

32 minutes ago, Patriotsfatboy1 said:

An employer match is not a requirement for a 401k. Some companies do not match at all and some do it when they want to.

We do not match our employee's contributions but we do contribute.  The amount we contribute depends on good of a year we've had but we always keep it at a minimum amount.

[Patriotsfatboy1 1,432]

8 minutes ago, TheNewGirl said:

So I can't read the article, it's behind a pay wall or some crap. Can someone dumb down the article and plan? 

At my work, I can contribute up to 25% of my salary, my company matches 100% up to 6%. 

But apparently, if you make more than $163k it's a tax increase? 

 

Thanks if someone can explain it to me. 

Instead of having that money be taken out pre-tax (i.e. tax deduction), you will get a tax credit for 26% of what you put in. I did not see anything on the company match, but I doubt that is even factored in until you take money out. 

Not sure where the $163k number comes in, but it is probably where the tax rate gets above 26%. 

[TheNewGirl 1,020]

1 minute ago, Patriotsfatboy1 said:

Instead of having that money be taken out pre-tax (i.e. tax deduction), you will get a tax credit for 26% of what you put in. I did not see anything on the company match, but I doubt that is even factored in until you take money out. 

Not sure where the $163k number comes in, but it is probably where the tax rate gets above 26%. 

Thanks. 

I make a lot less than $163k, but I was curious. 

[Patriotsfatboy1 1,432]

9 minutes ago, TBayXXXVII said:

That's a good idea.  I'll have to do that.  We usually have our people come around in April.  I'll get in touch with my cousin (works for Vanguard).  I'll have him see if my current plan is the best one to have.  My company uses UBS, they claim that they're giving us the best possible plans available.  But, you never know.

Depending on what else you have, also look into whether a Roth 401k is available from your company. We have both and I am contributing more now to my Roth 401k since that money is not taxed upon withdrawal and there are no minimum distributions. Having a mix between IRA/401k and Roth's are a good thing to have depending on which tax bracket you will end up in at retirement. 

[Patriotsfatboy1 1,432]

Just now, TheNewGirl said:

Thanks. 

I make a lot less than $163k, but I was curious. 

Even with all of the porn work on the side?

[TBayXXXVII 2,107]

All of these "plans" are just ways for the government to tax you on your money, without them doing anything.  I think it's really simple.

Once you get your first job, you get an ID number.  That ID number is associated with your personal retirement plan.  It starts out at a 2% floor and you can increase it to whatever amount you want.  In 40 years, you can eliminate social security entirely.  If you're making $8 an hour in a 40hr/week job, we're talking about $6 a week.  I don't think anyone will bat an eye over something like that.

[Gladiators 1,903]

Just now, Patriotsfatboy1 said:

Even with all of the porn work on the side?

She doesn't report the cash transactions dummy.

[Bert 1,087]

37 minutes ago, Patriotsfatboy1 said:

It will be an increase for me. I like the way that it is now, but I understand the rationale for the proposed change. 

I'm curious if you would support doing this with all deductions especially charitable contributions?

[TheNewGirl 1,020]

Just now, Patriotsfatboy1 said:

Even with all of the porn work on the side?

Shh!!!!!! Now everyone will want the link. 

[nobody 2,032]

4 minutes ago, Patriotsfatboy1 said:

Not sure where the $163k number comes in, but it is probably where the tax rate gets above 26%. 

That's exactly where I got it.  

[Hardcore troubadour 12,593]

It’s all BS and taking more from working people. Cut the nonsense with capital gains if you’re looking to get revenue from the rich. We know that ain’t happening.  We would see president Kamala faster than you can say Willie browns cack. 

[Gladiators 1,903]

Just now, Bert said:

I'm curious if you would support doing this with all deductions especially charitable contributions?

I sure as hell don't like the direction this is headed.  We were scrambling at the end of the year strategizing around the proposed SS tax changes.

[Thornton Melon 542]

6 minutes ago, Patriotsfatboy1 said:

Instead of having that money be taken out pre-tax (i.e. tax deduction), you will get a tax credit for 26% of what you put in. I did not see anything on the company match, but I doubt that is even factored in until you take money out. 

Not sure where the $163k number comes in, but it is probably where the tax rate gets above 26%. 

I think the $163K comes from the 2020 tax tables for a single person, and that's taxable income, after the standard or itemized deduction. My wife and I are safely in the 22% bracket, so this new law would benefit me. Therefore, I'm for it.

[TBayXXXVII 2,107]

1 minute ago, Patriotsfatboy1 said:

Depending on what else you have, also look into whether a Roth 401k is available from your company. We have both and I am contributing more now to my Roth 401k since that money is not taxed upon withdrawal and there are no minimum distributions. Having a mix between IRA/401k and Roth's are a good thing to have depending on which tax bracket you will end up in at retirement. 

Yeah, one that I know.  I have a Roth 401k.  I was single with only my son when I got it and while I have a gf and will likely end up getting married (been together 4 years), I've always just stuck with the Roth.  I make $84k a year, so I'm not rich, nor am I struggling.  My son is self sufficient, so it's me an the gf (wait, the rules [34B]).  I think for me/us, we'll be fine with that.  But I will still double check.  It's possible that at this point in time, I may want to mix it up.

[Patriotsfatboy1 1,432]

2 minutes ago, Bert said:

I'm curious if you would support doing this with all deductions especially charitable contributions?

I already got focked on that with Trump. He made it so that our state and local taxes were capped at 10k, so it is not worth itemizing unless you have huge medical bills. I can't claim charitable contributions anymore, although I understand there is a credit this year up to $300 or something (still have to look). 

[Bert 1,087]

4 minutes ago, Patriotsfatboy1 said:

I already got focked on that with Trump. He made it so that our state and local taxes were capped at 10k, so it is not worth itemizing unless you have huge medical bills. I can't claim charitable contributions anymore, although I understand there is a credit this year up to $300 or something (still have to look). 

I like the cap.  You could argue Biden's credit is doing exactly what Trump did with the cap. 

[TheNewGirl 1,020]

3 minutes ago, TBayXXXVII said:

will likely end up getting married (been together 4 years), 

4 years? WTF are you waiting for? 

[Patriotsfatboy1 1,432]

5 minutes ago, Bert said:

I like the cap.  You could argue Biden's credit is doing exactly what Trump did with the cap. 

Yeah, not a fan of the cap. The difference being that the cap on 401k is money that I am getting back. The cap on what I pay to state and local governments is that I don't get anything back on that. I am getting taxed on money to pay taxes. It was done to hurt the places that had higher state and local taxes (blue states). If it had been done to simplify the tax code, then I would have been more for it. 

[Patented Phil 823]

Here we go... It didn’t take this Focktard very long to start raising taxes did it. I can guarantee the economy is going downhill the next 4 years.

[Alias Detective 1,179]

31 minutes ago, TheNewGirl said:

So I can't read the article, it's behind a pay wall or some crap. Can someone dumb down the article and plan? 

At my work, I can contribute up to 25% of my salary, my company matches 100% up to 6%. 

But apparently, if you make more than $163k it's a tax increase? 

 

Thanks if someone can explain it to me. 

Put in at least 6% into your 401k and consider a Roth IRA for any percentage more you would like to save.  This is assuming you can qualify for the Roth.

 

never underestimate the value of tax free.

[edjr 5,547]

32 minutes ago, TheNewGirl said:

So I can't read the article, it's behind a pay wall or some crap. Can someone dumb down the article and plan? 

At my work, I can contribute up to 25% of my salary, my company matches 100% up to 6%. 

But apparently, if you make more than $163k it's a tax increase? 

 

Thanks if someone can explain it to me. 

you'll never make 163k, nothing to worry about

[TBayXXXVII 2,107]

12 minutes ago, TheNewGirl said:

4 years? WTF are you waiting for? 

Her.  She's an amateur bodybuilder.  She doesn't want to take the time off while she's still training in competing.  She said she's done at 35 (in April 2022), she has contracts that expire then.  Once all of her endorsement deals and that stuff are done, she's done.  At this point, it's just legal mumbo jumbo anyway.

[Alias Detective 1,179]

1 minute ago, TBayXXXVII said:

Her.  She's an amateur bodybuilder.  She doesn't want to take the time off while she's still training in competing.  She said she's done at 35 (in April 2022), she has contracts that expire then.  Once all of her endorsement deals and that stuff are done, she's done.  At this point, it's just legal mumbo jumbo.

What’s her webpage?

[porkbutt 860]

speaking of...my 401k is kicking so much ass...i might take a distribution because i think right now under covid rules you can without 10% penalty and pay the taxes over 3 years. just feel like buying myself something