https://money.usnews.com/money/retirement/401ks/articles/president-bidens-proposed-changes-to-401-k-plansAfter reading this article, I started thinking about how this would change my current saving strategy. Being in the 12% tax bracket (our taxable income for 2020 is $76k MFJ), it's an easy decision to put funds in a Roth 401(k). If this tax credit is implemented, it would seem to be more beneficial to put funds in a traditional 401(k) for anyone whose marginal tax rate is under 26% and a Roth 401(k) above 26%.
Let me know if I'm thinking through this correctly. It seems opposite of the current mode of operation.
I'm not sure how much momentum this tax reform will gain, but it's an interesting thought experiment.
