Trump guarantees 401(k) plans will remain unaffected by tax reform
President Trump promised on Monday that his proposed tax reform plan would not affect 401(k) retirement savings plans, easing fears that the popular retirement accounts could be impacted.
In a tweet, Trump stated, “There will be NO change to your 401(k). This has always been a great and popular middle class tax break that works, and it stays!”
The president’s reassurance comes after reports that the tax reform plan being discussed by Republicans in Congress could include limits on the amount of pre-tax money individuals can contribute to their 401(k) plans. Such limits could potentially reduce the tax benefits of these plans for middle-class workers.
Republicans have been considering reducing the annual pre-tax contribution limit for 401(k) plans – currently at $18,000 for workers under the age of 50 – to as low as $2,400. This proposal has sparked concern among workers and retirement planning experts who fear that it could discourage people from saving for their retirement.
The prospect of changes to 401(k) plans has also drawn criticism from Democrats and some Republicans, who argue that it would hurt middle-class Americans who rely on these accounts for their retirement savings.
Despite these concerns, President Trump has promised that 401(k) plans will not be affected by the tax reform plan. This announcement has provided some relief to workers who were worried about the potential impact on their retirement savings.
It remains to be seen, however, what the final tax reform plan will look like and whether it will include changes to 401(k) plans. As discussions continue in Congress, it will be important for lawmakers to consider the potential impact of any changes on the retirement security of millions of Americans who rely on these plans for their financial future.
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