WASHINGTON — President Trump said early on Monday that his proposed tax plan would not prompt any changes to Americans’ tax-deferred retirement plans, pushing back against reports that the Republicans are weighing a proposal that would significantly reduce the income workers can save in these popular programs.
It is not clear whether Republicans will put a cap on these contributions in their final version of the tax bill, but such a plan is not likely to go over well with middle-class workers, who rely heavily on these retirement plans for savings.
Details of the Republicans’ tax bill have been closely held, and they would not comment on Friday about possible changes to 401(k) policies. It was not clear from Mr. Trump’s Twitter post on Monday whether he meant that he would not support a bill including alterations to 401(k) limits or that he knew the Republicans’ draft bill did not include such changes.
Democrats and other critics of Mr. Trump’s tax plan have said it would not help middle-class Americans, despite White House and Republican promises. Any plan to cap 401(k) savings could bolster those arguments.
Republicans are discussing proposals that would potentially cap worker contributions at $2,400 annually for 401(k) retirement accounts, lobbyists and consultants have said. Currently, workers can put away $18,000 a year in tax-deferred plans; workers who are over 50 years old can save up to $24,000.
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