The emphatic Monday-morning tweet sent by President Trump claiming 401(k) plans would not be impacted by the GOP tax plan created headlines across the country.
According to a story first reported in the Wall Street Journal, Congressional Republicans are considering capping pre-tax contributions on 401(k) plans at $2,400 a year. Contributions above that threshold would be invested in Roth 401(k)s, which are made on an after-tax basis and distributed tax-free in retirement.
“There will be NO change to your 401(k),” the President wrote on twitter. “This has always been a great and popular middle class tax break that works, and it stays!”
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
