Post election selections?

[Atomicbassturd]

Gentlemen,
I have a question regarding 401k direction if the presidential election is won by the Democratic Party. There has been some concern that the 401’s may be targeted at some point. I am not intending for my unsubstantiated information to be any start of a political discussion. I am recently retired and would like any advice/feelings on a safe path for moving a large sum if there is one.

Thanks and God bless.

[boneil]

That rumor has been going around for many years. I don't see how anyone would be in favor of going after 401K's or any other retirement. Also, even if changes were to be made, they wouldn't affect you. Changes would affect distant future retirees. Lawmakers have to give people enough time to adjust saving strategies.


I don't think you have anything to worry about regardless of the outcome. Enjoy retirement.

[200xp]

IMHO, retirment plans are like social security. By that I mean each side of the aisle knows that if they are the ones to screw it up, then it would be political suicide. There may be some alterations for the future in regards to retirement plans, but no way either party touch exisiting accounts.

[NitroZ7]

I think we could see end of the year downward pressure if people think capital gains taxes will be higher next year. People may decide to take gains before year end.

[apenland01]

The biggest risk to 401k is the increase in taxes in the future with a different administration. If you are taking money from a 401k, they can target it with taxes specifically to the withdrawal/RMD or simply by having a larger tax net with overall tax rates and thresholds. There's much debate right now about whether it's best to convert a traditional 401k to a Roth now, in order to lock in tax rates that are supposedly lower now, than they would be in a couple of years with a new administration....

[marlake]

A while ago, I was surprised to read that the "market" was hoping for a Biden presidency and a republican senate. The explanation, which makes some sense, was that Biden would be more stable regarding international trading and a republican senate would stymie attempts to push through a radical socialist agenda. FWIW.

[NitroZ7]

It looks like the Senate races may not be decided before the end of the year. Im wondering if we see people taking gains this year just in case. I hate making investment and financial planning decisions based on our uncertain elections.

[wiget10]

The proposal wasn’t to take them. It was to remove the tax benefit of them.

[mossie3]

Bitcoin. With less than 5% of Bitcoin being owned within the United States, there's growth opportunities, as political strife in our country grows. If you don't have complete trust with our government printing, and controlling our money supply, give it a look. Bitcoin has been surging after Paypal announced it will be accepting Bitcoin. Investment firms have been establishing Bitcoin investments. When banks begin accepting Bitcoin, it will be a rocket ship.

With that said, at this stage, Bitcoin is risky, and could also go to near zero, as it has lost over 90% of its value several times, being left for dead, but always bouncing back. Don't buy any more that you can afford to lose, or that you will cry over, then come back 5 years from now to see where it's at. I believe you will be a happy camper, and will be able to buy any new bass boat you want with your Bitcoin.

[idbefishing]

I bought into BTC 3 yrs ago and just now got back to even. I can guarantee you that I'll dump it ASAP when it hits 20K this time. I had my thumb hovered over the sell button the last time but didn't press it, won't happen again.

[flyingwillie]

I think 401k’s are pretty immune. What I heard Biden would do is increase tax on dividends to the ordinary income tax rate which would be significant. Most of my retirement income is dividends.

[mossie3]

You know the next time it hits $20K and you sell, it will go to $40K don't you?

I bought into BTC 3 yrs ago and just now got back to even. I can guarantee you that I'll dump it ASAP when it hits 20K this time. I had my thumb hovered over the sell button the last time but didn't press it, won't happen again.

[NitroZ7]

I think 401k’s are pretty immune. What I heard Biden would do is increase tax on dividends to the ordinary income tax rate which would be significant. Most of my retirement income is dividends.

Getting rid of qualified dividend rates would be catastrophic for retirees and others.

[flyingwillie]

Getting rid of qualified dividend rates would be catastrophic for retirees and others.

Yes indeed.....but did voters consider this? Unintended consequences