Why This Chicago Progressive Had to Delete Her Account Following This Post
Here's Why Trump's Ukraine Strategy Is Better Than Biden's
JD Vance Didn't Hold Back on Bolton, Ukraine, and Crime in This Interview
Gavin’s Limpy Bluster
Arizona Charges 170 in Immigration Sweep
CNN Admits the Brutal Truth: Democrats Are Bleeding Voters
Trump Will Send Troops to Baltimore if It Needs Help
Chinese Scammer Sentenced to 24 Months in Prison
DeSantis Defends Removal of Rainbow LGBT Crosswalk
Boston Cops Defy Left-Wing Mayor Michelle Wu, Secretly Aid ICE in Arresting Criminal...
Vivek Ramaswamy Surges Ahead in Ohio Governor's Race
FBI's 'Summer Heat' Initiative Under Trump to Make the U.S. Safe Again
California’s Homeless Crisis: Two Decades of Empty Promises Under Newsom’s Watch
When Envy Becomes a Political Weapon
Socialist Zohran Mamdani’s Muscle Showdown Falls Flat as Social Media Roasts His Bench...
Tipsheet

President Trump: Calm Down, We're Not Touching Your 401k With Tax Reform

Late last week a report from MarketWatch set off panic across the country as lawmakers on Capitol Hill continue to grapple with how to pay for President Trump's tax reform plan. The headline? There’s talk of capping 401(k) contributions at $2,400 per year

Advertisement

Proposals floating around Washington to cap the amount that Americans can contribute before taxes to 401(k) plans and individual retirement accounts are unsettling professionals in the retirement industry.

Republicans are looking for ways to generate revenue to support broad reductions in individual tax rates. One idea is to limit the amount of pretax money households can sock away for retirement saving. Such a move would likely generate significant political blowback but it hasn’t been explicitly ruled out, stirring worry among industry lobbyists.

Lobbyists and others in the retirement and financial services industries who have spoken to congressional staff and committee members say lawmakers are looking at proposals that would allow 401(k) participants to contribute significantly less than what is currently allowed in a traditional tax-deferred 401(k). An often mentioned amount is $2,400 a year. It isn’t clear whether that would only apply to 401(k)s or IRAs or both.

Advertisement

Early Monday morning, President Trump calmed the waters and cleared the air on the rumor, saying 401(k) plans will not be touched as part of his tax overhaul. 

This is not only a popular "tax break," but far more importantly allows individuals to save for their retirement in order avoid reliance on government later in life.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement