President Trump on Monday adamantly denied reports that the Republican tax plan could drastically reduce the amount of pretax money Americans are allowed to contribute to their 401(k) plans, vowing “NO change” to the retirement account rules.
“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!” Trump tweeted.
The assurance follows numerous press reports that Republicans are considering lowering the cap on employee contributions. Reports said one possibility could be to lower the annual cap for pretax contributions from the current $18,000 for those under 50 to as low as $2,400.
This could be a way to offset sweeping tax cuts the Trump administration and congressional Republicans are pursuing as part of their tax overhaul. But amid warnings from the industry that such a significant 401(k) change could discourage people from saving for retirement, Trump on Monday seemed to shoot down the reports.
Trump, meanwhile, touted the tax plan in an exclusive interview with Fox Business Network’s Maria Bartiromo.
“It’s going to be a great bill,” Trump said.
The plan would aim to reduce taxes for workers and businesses, lowering the corporate tax rate from 35 percent to 20 percent while collapsing the number of personal tax brackets from seven to three or four.
“I want to get it done by the end of the year, but I’d be very disappointed if it took that long,” Trump said on “Sunday Morning Futures.”