Posted on 10/23/2017 7:11:58 AM PDT by davikkm
If you are considered a “middle class worker,” you are about to be sucker-punched by a Republican proposal to alter the treatment of 401(k) contributions, which could make it much harder for you to save.”
I am happy to report today President Trump just tweeted there will be NO change to the 401(k) Savings and Retirement Plan in his Tax Reform.
“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!”
(Excerpt) Read more at investmentwatchblog.com ...
Oh, ye of little faith. How about I send you a mustard seed? I’ve got a stash. :-)
Two states my behind. It affects everyone who itemizes in any state with income taxes, property taxes, or sales taxes.
Which is why, I both called and emailed to McConnell and Rand Paul's offices this morning. We need HIGHER limits on 401k contributions, not lower.
MANY companies have done away with traditional retirement plans, using 401k's as an excuse. The result is, for a LARGE number of Americans, 401ks are their primary (or only) source of retirement savings. Given the shaky status of Social Security, one would think they'd be happy to see Americans actively saving for their own retirement. sheesh...
Faith can move mountains, but history tells you a lot more. Trump will sign what they send him.
Well, if by some miracle, what those expletives-deleted on the Hill send the POTUS is a good deal for the country, I won’t have a problem with the prez signing it. :-)
Good call. I believe 401s have been for chumps compared to defined pension plans but they are all we have now. Better leave them alone.
A better idea would be the penny plan and just cutting spending.
What's stopping you from saving the excess outside of the 401(k)?
-PJ
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!— Donald J. Trump (@realDonaldTrump) October 23, 2017
Nobody can retire on that. It takes a minimum of 25% of gross income invested at 6% to successfully retire in 40 years.
Gee, I’m paying $11K in state and local taxes, and my income is only $75K! I pay $3K income tax, $8K property tax.
Well, that would really depend on your income. If you make $400K, and invest $100K every year, you’re going to have plenty of money in far less than 40 years.
“For millions of us who live in high tax states, this bill will cream us.”
It is supposed to.
Those of us in low-tax states are subsidizing that deduction.
If you and others begin to feel the pain, and the actual costs of runaway Democrat spending policies, perhaps you and others will finally stand up against it.
I first thought he made up this “threat” just so he could hang in on Congress and come out saying he would not allow it to happen.
What's insane is, how fast that cap has been increasing. Just 5 years ago, it was $110k.
Meanwhile, there has been no corresponding increase in the SS payments received. SS is already generating NEGATIVE RETURNS for people paying the maximum. Increasing the cap just makes it MORE negative.
Federal Income taxes are losing their effectiveness in wealth re-distribution since... nearly half of Americans already pay NOTHING. For a large number, they actually get money BACK, rather than pay anything. Now, THAT... is insane.
If you earn well you should retire well.
My state gets back less than 70 cents for every dollar we pay in Federal tax. Some states get several dollars back. It is the high tax states who are subsidizing them.
Most people nowadays are awash in debt (college, their kids' college, weddings, cars, all things whose prices went through the roof because of women entering the workforce coupled with the widespread use of credit.
Not to mention that 401(k)s get taxed when you retire: and as the govt. continues to run out of money, look for the tax rate on withdrawals to go through the roof.
>>Who can retire on $5,500 a year savings contributions?<<
The limit is $18,000 with $6,000 catchup ($24K a year for 50+).
Where did you get the idea there was a $5,500 cap?
I read that tweet. He said nothing about state and local tax deductions being preserved. Also nothing about charitable deductions.
I want access to it penalty-free before 59 & 1/2
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