The election of Joe Biden as President may clear the way for many changes in the retirement planning landscape. As of this writing, some U.S. Senate races are still undecided, so the ultimate balance of power in the Senate can certainly affect the content and implementation of these proposals.

Biggest change in qualified plans in almost 50 years

Over 30% of Americans contribute to tax preferenced retirement plans (401(k), IRAs, 403(b), 457 and MEPs). Participants have invested $58M in 401(k) plans alone. The funding currently accounts for over $29 trillion dollars. The Democratic proposals would shift some of the benefits of tax deferral in traditional retirement accounts toward lower- and middle-income earners with the goal of encouraging additional saving by those taxpayers.