President Donald Trump calmed taxpayers’ fears regarding their 401(k) plans in a tweet on Monday:
“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!” Trump tweeted.
Proving that Twitter is a great way for the president to directly address the American people, Trump was able to debunk numerous press reports that falsely claimed the Republican tax plan could drastically reduce the amount of pretax money Americans are allowed to contribute to their 401(k) plans.
Reports said one possibility could be to lower the annual cap for pretax contributions from the current $18,000 for those under 50 to as low as $2,400, according to Fox News.
Warnings came out from the industry that such a significant 401(k) change could discourage people from saving for retirement, so Trump apparently felt compelled to set the record straight.
The president explained the tax plan in an interview with Fox Business Network’s Maria Bartiromo.
“It’s going to be a great bill,” he said.
The plan would aim to reduce taxes for workers and businesses by lowering the corporate tax rate from 35 percent to 20 percent. It would also lower the number of personal tax brackets from seven to three or four.
“I want to get it done by the end of the year, but I’d be very disappointed if it took that long,” Trump said on “Sunday Morning Futures.”
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
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