...on retirement investing.<ttUnder Obama's budget plan, higher-income earners would be limited to a tax deduction at the 28 percent level, even if their current income-tax bracket is much higher.If this budget actually becomes law, a person who is at the highest marginal tax bracket of 39.6 percent (this doesn't include state income taxes or the 3.8 percent Obamacare tax) would only be entitled to a tax deduction equal to those individuals in the 28 percent tax bracket.So while they would receive only a partial deduction today, when they withdraw the money during retirement, they would be fully taxed at their current tax rate.This means they would not only pay taxes on some of their contributions today, they are fully taxed when they withdraw the money in the future. This, of course, is double taxation. http://www.cnbc.com/id/101504549?__source=yahoo|finance|head...The fear is that many of those who will be affected by this are the ones setting up the 401K for their small company employees, and of course, themselves. If it is not attractive to them, they may not want to go through the hassle of setting that option up and the scrutiny that will be applied to the 401K, which leaves their employees with much less opportunity to save for retirement.Not crazy about the trend in Obama's 2015 budget. RMDs for Roths, 5 year max payout for inherited IRAs, and now this. I don't see these things as raising a whole lot of taxes for the gov't, but I sure do see them impacting savings rates for retirement in a very negative way, particularly for those who save best when it comes right out of their paycheck just like a tax.IP
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