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Will Biden or Trump do more for your retirement plans?
Here are the predictions.
Savings Contributions
Generally, Trumps policies benefit high income households while Bidens favor low- to middle-income earners.
Trump supportedmaintaining or expanding tax deductionsfor retirement savings.
Biden proposed changing thetax benefits of 401(k) plansfrom a deduction to a tax credit.
However, the candidates policies could affect individual sectors and industries.
For example, thefossil fuelsand financial services industries could see a bump under a second Trump presidency.
Trump pledged to continue rolling back environmental regulations and lifting restrictions on oil and gas drilling.
During his presidency, he also eased requirements on smaller banks and financial institutions.
Biden supports federal funding of the renewable and technology sectors.
Under Biden, the Federal Energy Department earmarked $7 billion to establish clean hydrogen hubs across the country.
However, tax cuts could expand the deficit, leading to higher income taxes down the road.
Social Security
Both Trump and Bidenpromised not to cutSocial Security benefits.
However, the similarities end there.
Biden proposed increasing Social Security benefits for those in their twilight years and for beneficiaries with low lifetime earnings.
He also wants toapply payroll taxeson incomes of $400,000 or more.
Trump hasnt proposed expanding Social Security.
During his presidency, Trump introduced apayroll tax deferralin response to COVID.
However, his proposed tax hikes on the wealthy and corporations could slow market gains.
The outcome of the U.S. Congressional elections could also impact your retirement plan.
One-third of the U.S. Senate seats and all 435 U.S. House of Representatives seats are up for grabs.
Control of either or both houses could determine whether Biden or Trump continue their policies or implement new ones.
However, Blain said bipartisan cooperation in Congress and with the White House is needed to alter retirement policy.
Having a sound retirement plan mitigates risks due to a swinging policy pendulum.
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