Will Biden’s plan to overhaul 401(k) tax breaks force some companies to cut retirement benefits?
Pensions are long gone. Soon many of the benefits of 401ks could be gone too for providers. That likely means diminished benefits for 401k participants too.
That’s because employers who make contributions to a 401(k) must offer that same benefit to their workers. Under Biden’s plan, business owners would have to reduce their own tax benefit, while continuing to contribute on behalf of their employees, which is expensive, particularly during a pandemic.
This article was originally posted here: https://www.ac2news.com/2020/10/will-bidens-plan-to-overhaul-401k-tax-breaks-force-some-companies-to-cut-retirement-benefits/.