Tag: refundable tax credit
The financial services industry seems very exorcised by a relatively modest proposal in Joe Biden’s tax plan – namely, changing the tax incentive to save for retirement from a deduction to a flat, refundable tax credit. Let’s see if this proposed change would really “upend” our entire 401(k) system. Saving under current law…
The Saver’s Credit gives a special tax break to low- and moderate-income taxpayers who are saving for retirement. It was introduced in 2001 and scheduled to expire in 2006. The Pension Protection Act of 2006, however, made the credit permanent and indexed the income thresholds. The Saver’s Credit is in addition to other tax benefits…
