- Thomson Reuters
- President Donald Trump said that including changes to 401(k)s and retirement accounts could be used as “negotiating” tools for the Republican tax-reform bill. The comment comes amid reports that Republicans could consider a cap on the amount Americans could contribute to a traditional tax-deferred 401(k) or IRA as $2,400 a year. Rep. Kevin Brady, a key author of the forthcoming tax bill, said earlier Wednesday the changes were still on the table despite a tweet to the contrary from Trump on Monday.
President Donald Trump said on Wednesday that changes to Americans’ retirement-savings accounts could still be included in the forthcoming Republican tax-reform plan.
Trump was asked about comments from Rep. Kevin Brady, chair of the House Ways and Means Committee and an author of the forthcoming GOP tax bill, that there could be changes to retirement accounts like 401(k)s in the plan.
Trump said 401(k)s are “very important” to him because they benefit the middle class but suggested tweaks could be included.
“Well maybe it is, maybe we’ll use it as negotiating, but trust me, that’s one of the great things,” Trump said. “There are certain elements of deals that you don’t want to negotiate with – and Kevin knows this, and I think Kevin Brady is fantastic – but he knows how important 401(k)s are.”
Here’s a quick rundown of the retirement-savings drama so far:
- Friday: Reports surfaced that the GOP was considering including an annual $2,400 cap for traditional tax-deferred 401(k)s and IRAs. The current contribution cap for a 401(k) is $18,000 a year for people under the age of 50. Concerns pop up that this may depress average Americans’ propensity to save for retirement. Monday: Trump tweeted that “there will be NO change to your 401(k),” seemingly nipping the idea in the bud. Wednesday morning: Rep. Kevin Brady said changes to retirement-savings accounts were still on the table in the tax-reform bill. Wednesday afternoon: Trump told reporters that there would be no changes to retirement savings in the bill or possible proposed changes that could be used for “negotiating.”