If Biden gets in, and especially if Republicans lose the Senate, what tax strategy should we be doing to our traditional 401k?

We all know all the free stuff won't be free. Thinking the 401k has a big bullseye on it. Might have a window to act first.

Like convert to Roth maybe? Dump it and take the tax hit now?

IMO, the fact that the Dems. lost several seats in the House, and the Senate is going to be a razor thin margin majority for one of the other, is going to keep any large legislative measures from passing. I don't see any reason to not maintain my current path forward.
Much of what one does or doesn't do with their 401's, should pivot on where they are in the savings process. About to retire compared to many years out are two different strategies. BUT, neither need to make big moves right now, as far as I can see. Although it's obvious that there's many around here that see the sky is falling. I'm not that guy.

I mentioned this on the thread discussing the stock market......no comments. Apparently no one has a 401 K, or they are not worried about giving their 401K to socialist government! memtb

I am not in saving mode. I am in spending and enjoying what time I have left mode. I have never been a big fan of Wall Street, and am far less so nowadays. This recent run to 29-30 with the corporate belief the future will be sans Trump makes me believe the stock market is just as susceptible to manipulation as elections.

Hope my heirs enjoy their windfalls.

While I believe 401(K)'s, IRA's and such are in the bullseye, I think the ROTH is what chaps the behind of socialists more than anything. But, as said, with the large gains in the House and the Senate divided, I don't think the next two years will allow the Dems to act out their dreams of confiscation of retirement assets.

That said, I will actively start moving away from putting new money into tax deferred structures in favor of business and real estate investments. No sense in putting all the proverbial eggs in one basket.

Recently read "Power of Zero" where the author (David McKnight) makes a pretty compelling case to move 401K/retirement investments to better tax advantaged investments due to likely tax implications. We are in a period of fairly low taxes; pretty good bet taxes will increase in the future. Not sure it truly is possible to shield all retirement assets from taxes, but a decent strategy to minimize impact as much as possible. Not sure how long some of the current tax advantaged options will remain available/viable, but diversification of tax implications warrant examination.

Dutch,
For those that may have missed it please repost what happened with your brother and his retirement account in the Netherlands.

That should be a wake up call to all regarding socialism and government mandates by the socialist..

Thanks in advance.

Move them to like, what?

I agree 100%.

Smart... well diversified mix of stuff.

I see potential for "Green Asset" credits. Rural land is never a bad investment.

My taxes on 305 acres is $682 a year...

Farm Investment equipment drops my tax burden almost enough for an EBT card.

On 401Ks and taxes, the government will start slowly and gently by first lowering the age for withdrawals and no penalty, many folks will jump right on that for accessible cash.

Then they’ll move to increase the withdrawal factor to raise your tax base and expedite depletion of the balances .

Then they’ll start removing some of the beneficial options on taking social security.

There’s many ways to do it over time without a direct frontal assault on the retirement accounts and get the desired effect.

Biden will do an executive order to resend Trumps tax cuts. Then bring back the death tax. Tax the rich some more. Then there is the luxury tax. The gun and ammo tax. Then the carbon tax. Well you get the idea.

Nope, they want access right now to that tax deferred 3.6 Trillion. Either take away tax deferment and/or make all previously deferred taxable at 20-30%. They want to spend 6-8 trillion and have already floated a 4 Trillion tax increase. Look for a value added tax on gas/ oil and electricity of low end 50%.

In short, he retired this year, and by law, his equivalent of the 401(K) was converted into a government run pension, with a calculated interest rate of 1%. Well into 7 figures, lawfully taken. Poof, gone. Nothing will go to his heirs, ever. Oh, and they still tax the pension proceeds as income.

Think it can't happen here? "To protect people from running out of money in their golden years"? A nano second after they see a glimmer of daylight to get it passed.

Said that a week ago and had some numbnut troll make a comment about my social security check being the source of funding.

Give em books.. send em to school..

Lol.

I don't believe the political will is there right now to screw with 401ks. It would be political suicide. Damn near everybody has one.

What makes you think Biden gives a crap about political suicide? he is stealing the election, him and his handlers will do as they please..... time to wake up

Step Dad never graduated high school. Would have had Dyslexia, if they had had it then.
Blue collar union member, Democrat minded but never voted.
He had some views that ran counter to my Republican Mom.

From an era and place of pensions, he saw IRA/401k as a scam to put
retirement on the workers back. Swore one day they would eliminate pensions
and tax the self funded retirements. He did join the 401k eventually offered at
his work.

Well...pensions are long gone from private business.
Now he is forced to take money he doesn't need out of those accounts.
So it can be taxed. Then he can put it right back into the same type account.

And 35 years later, I see so many of those things Dad said were right.

Cannot believe the amount of denial as to what's going on here.

Yeah no schit people are so far behind , no wonder we are in such trouble. Same fuggers will say ,"how did this happen? "

Thanks, Dutch.

And, Damn, it hurts to read that again and know fully well that it can happen here all to quickly, electronically and by fiat executive order.

I wished that every poster including trolls and liberals here at The Campfire will read what you were good enough to repost.

Anybody that believes the Bolsheviks aren't drooling over their 401K is a naive fool

Fact.

And we will have FBI Agents in every garbage cans to spy on all White males over age 45.
You guys believe the moon landings was a hoax too?
Let me sell you some Ocean front property in Nevada, I’ll give you a really attractive price.
Y’all need to worry more about how many blades of grass will sprout up next spring than this crap, the only real topic mentioned was the Estate Tax, and it may happen.
I’m hacking your cell phone right now to steal your 401k!
Damn fella’s get a grip

Yeah, it's never been done before...... lmao

Christ sakes they have democrats believing white privilege is a real thing, they have them believing they are racist because they are white and only to overcome that give money to the poor, helpless, less fortunate. They will gladly stand by as their 401K’s ars raided all in the name of good and doing the right thing. Because you are selfish if you think you need 100k, 200k, 300k, 400k,500k,600k retirement accounts. Shame on you for being selfish! You damn racist born to white privilege! That’s what they will tell you.. So yeah no such thing as political suicide anymore when all they have to do is call you racist!

The democrats took the gloves off pre 2016. This ain’t gonna go down by using Queen of Marquesberry rules

No slam meant when I say that you obviously haven’t been listening to Pelosi’s comments about accessibility to Retirement accounts.

The Estate tax pales in comparison to the golden egg.

I've been saying for years that they will come after retirement funds. "You were so privileged to have been able to scrimp, save, sacrifice, so you need to share with those unfortunate enough to have not."

Bingo we have a winner!

I think it will be “ to protect you from running out of money because of imprudent decisions and becoming a burden on society”.

With the stroke of a pen.

We’re running $27 trillion dollars debt.
That’s 27,000 billions. That’s 27,000,000 millions.
That’s roughly 1/3 of the entire global economies GDP.
That’s 1/4 of the entire wealth of the the United States. So they’d have to steal 1 of every 4 dollars of wealth in existence in the U.S. to pay that off.

Taxation is a waste of time. Wealth, monetized in fiat currency is a [bleep] joke.

Net effect will be the same.

I have no concerns about our government ever paying off the debt or even paying it down. It ain’t gonna happen and was never intended to be paid off but only to service the debt thus our long term low interest rates and for a long time to come.

There will be a worldwide monetary reset in the future, there will have to be one.

Now, Jack,,,,can you and I run our personal business like that? Well hell no but do look at people heavily in debt with the IRS and other entities who settle those debts for fractions of the total amount and there you’ll see the coming International monetary reset,

Or not.

Without a doubt. Every in this happens by design.
A world, digital currency is forth coming. Sooner than later.
We allow it, freedom is dead.

While waiting for my wife to check out 24 out of 27 customers checking out at Walmart paid using some kind of card. My concern is, how much is the tax going to be on the cash that folks have squirreled away when everything goes digital? I feel like having enough cash put up to pay bills and live off for a few years isn't going to be a good thing.

Good point, TG. The government can be very innovative as we all know.

What would it be called? Maybe something like a “Handling (inconvenience) Tax?

Heh, the possibilities for being screwed over are just about endless and those things will happen with the hitting of a few computer keys. I doubt that there’ll be any Congressional debates on it.

Again, jmo.

I’m spending all my money on primers.

Legislatively bills are put into place.

Free salary with the new green deal.

Open borders and free unlimited health care for anybody that wants it.

Free Housing, free food, free phones.

Pass the bills and incur the debt first...

The great transfer of wealth will happen later.

And I assure you it won't be the ultra-wealthy like Amazon or Walmart paying the bill. They will just raise prices and pass the tax along to you.

We won't be going away from cash for a while. Iran and North Korea only accepts US dollars as bribes to behave.