WASHINGTON — A major tax reform plan being debated in Washington could change how much people can contribute to their 401(k) plans.
[RELATED: House passes $4T budget in step forward for Trump tax plan]
People are allowed to contribute up to $18,000 a year to their 401(k). For people 50 and over, they can put in as much as $24,000 annually.
But reports surfaced this week that Republicans were thinking of capping the amount at $2,400 a year.
President Donald Trump has tweeted before that there will no change to people’s 401(k) and that it’s a popular middle-class tax break that works.
But earlier this week, Trump said capping 401(k) contributions is a possibility. A key committee chair also hinted that it’s an option.
Action 9 investigator Jason Stoogenke spoke to a financial advisor who believes there’s a long way to go before there is a cap in place. He said if there is a cap, it will be much higher than $2,400.
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Cox Media Group
