Retirement savings and consumer advocates are applauding President Donald Trump’s Monday tweet promising “NO change” to 401(k)s as tax reform kicks into high gear.
Trump’s tweet comes as news swirls that Republican lawmakers are mulling a cap on 401(k) contributions at $2,400 per year.
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
The Save Our Savings Coalition — which includes AARP, the American Retirement Association, American Benefits Council and American Council of Life Insurers — said Monday that Trump’s tweet “made clear just how much retirement savings matter to families across the country.”
Meaningful retirement incentives “help millions of hardworking, middle-class families plan for their future and any effort to reform the tax code must protect these families and the retirement planning they’ve depended upon for generations,” the Coalition said.
Both the Senate and House have approved budgets, paving the way for tax reform.
While the Coalition said that it was “thrilled” to see the president’s statement via tweet, the groups will “continue to work to ensure lawmakers do right by the middle class by preserving and expanding our retirement system as tax reform moves through Congress.”
Indeed, Greg Valliere, chief global strategist for Horizon Investments, said in his Monday commentary that passing the budgets “was easy.” Now comes “the hard part — the Ways and Means Committee has to write a tax bill in the next couple of weeks, and the details will prompt an uproar from lobbyists,” he said, citing the battle “starting already” over 401(k) accounts.