Posted on 10/21/2017 6:37:10 PM PDT by Mariner
Wall Street pushed back hard on Friday against a report that congressional Republicans are weighing a plan to severely limit the amount of money Americans can contribute to their 401(k)s.
The Capitol Hill lawmakers, searching for ways to pay for President Trump’s broad proposed tax cuts, are eyeing a $2,400 cap on pre-tax contributions to 401(k) plans, used by millions of US workers to save for retirement.
Currently, the pre-tax limit for such contributions is $18,000 a year.
Contributions to 401(k)s are tax-deferred, which means that the government won’t be able to get its cut until retirees start withdrawing money from those accounts — which they must do by age 70¹/₂.
As the number of US workers covered by pension plans shrinks, 401(k) plans are becoming more widely used — and necessary.
There is roughly $4.7 trillion in 401(k) plans in the US.
(Excerpt) Read more at nypost.com ...
If they take pleasure in the elimination of the SALT deductions, this one ought to give 'em wood. After all, it's approximately the same class of people who itemize and take the SALT deductions as load up their 401K to a thousand or more per month.
Don't you want to stick it to these "rich people"? Can't you imagine just how good it would feel?
over here too
It is easy to cover the loss of tax revenue. DO NOT SPEND SO DAMN MUCH MONEY!!!!!
“As the number of US workers covered by pension plans shrinks, 401(k) plans are becoming more widely used — and necessary.
Not necessary and flawed.
Most people in that category utilize the ROTH IRA
Third rail
They weren’t furious when they moved our retirement ages out further (and did not affect their own). All of this corruption needs to be brought to an abrupt halt.
Most employers match a percentage of you contribution making the 401k the best investment available to the wage earner.
“Most people in that category utilize the ROTH IRA”
No, they don’t.
They max their 401k before ever considering a Roth.
Eliminate retirement for congress and their staff.
I just want a F@cking tax cut and I want it to take less than a million years to fill out my taxes.
They want the Money now rather than later.
The Roth IRA is not available to high-income taxpayers.
But not matter how high your income, you can put in $18K/23K.
How much are we allowed to save now? $18k? My first $6k would go to a Roth. 14 year olds should start one.
If I was a youngster starting out, I’d not put a dime (other than employer matching contributions) into “PRE-tax 401K plan contributions if I had the choice. I’d put the max into POST-tax 401K plan (also known as Roth 401K plans) and the max into Roth IRAs each year (doing the traditional IRA contribution followed by immediate Xfer to ROTH IRA account where income level precluded direct Roth contribution).
It’s better to take the tax hit now in order to be spared the future tax hits.
I totally support President Trump, and I’m glad the stock market is booming, but I think about 6 years of Obama’s stock market was underwritten by the federal reserve. It will correct, in my opinion, very sharply.
I’ve had 2 corrections in my lifetime that cut my acvount in half. It is a sobering thing to experience.
I don’t know what this means to a deduction, but I would caution people against putting all their eggs in one basket...and that’s what our government promoted all during the obama years.
This.
That would take courage and hard choices.
Obviously you don’t know our Congress.
Always contribute up to the max your employer will match.
#1 rule of personal investing, and no pro will advise otherwise.
Many 401k’s allow you to contribute into a bank savings account.
With matching.
And bond funds too.
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