SALT vs 401k taxes under Biden

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Locked
Topic Author
BisterMean
Posts: 16
Joined: Tue Sep 01, 2020 8:20 pm

SALT vs 401k taxes under Biden

Post by BisterMean »

Looking for a sanity check here. Biden is proposing a flat 26% deferral on t-401k contributions (boo!). I'm also seeing he's wanting to lift the SALT deduction cap from TCJA (yay!).

If I'm in the 32% bracket, that means my 401k deduction is $1170 less? Meaning, instead of all $19.5k I can only deduct $18.3k?

Then, if I can deduct the full SALT (I remember being around $24k last) instead of needing to take the standard $12.4k deduction, that puts my taxable income at $10.4k LESS? [24k-12.4k-1.17k]

Is this roughly the right way to comprehend this? Merci!
Flyer24
Moderator
Posts: 2099
Joined: Sun Apr 08, 2018 4:21 pm

Re: SALT vs 401k taxes under Biden

Post by Flyer24 »

Thread is locked. Politics are off-topic for this forum. This includes the tax proposals of the candidates.
Locked