A change in tax law is under consideration in the U.S. Congress that could cap pre-tax contributions to the popular retirement plans known as 401(k)s.
The suggested cap would mean that millions of American workers would pay more in taxes, to make up for tax cuts elsewhere in the overall reform plan, such as a cut in corporate taxes.
President Trump tweeted Monday morning, October 23, that he does not support such a change, calling 401(k) a “great and popular middle class tax break that works, and it stays!” But details of the still-nebulous reform plan are largely in the hands of the House of Representatives’ Ways and Means Committee and its chairman, Kevin Brady.
The Thing to Know:
Asked Monday whether the President’s tweet affects his committee’s consideration of the 401(k) issue, Brady responded simply “no.”