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Originally Published: Sep 29, 2020
Originally Published: Sep 29, 2020 Last Updated: Jan 10, 2024 6 min read
Democratic presidential candidate Joe Biden speaks at in Charlotte, North Carolina, on September 23, 2020.
AFP via Getty Images

A Joe Biden presidency could mean some changes to the way your retirement contributions are taxed.

The Democratic presidential candidate is proposing to equalize the tax benefits of contributing to a retirement account, so that high earners won't get a disproportionate advantage like they do now.

With the country facing a retirement crisis — and the pandemic delaying retirement for some — saving for later in life is a priority many. Here’s what we know about the proposal so far.

The status quo

Taxpayers postpone paying income tax on contributions to their traditional retirement accounts, like a 401(k). (It's the opposite for Roth IRAs, where you pay tax on the contributions but withdrawals will be tax-free.) The higher your income, the higher the value of your tax deduction.