Lawmakers are considering increasing the contribution limit for a well-known retirement savings plan, CNBC has learned.
CNBC has confirmed in which lawmakers are right now looking at raising the 401(k) contribution limit to $20,000 or more. in which will be a reversal coming from earlier reports in which lawmakers were considering reducing in which tax-deductible amount to as low as $2,400.
Earlier, top House tax writer Rep. Kevin Brady said in which he might like adjustments to “help people save more, sooner.” The chairman of the House Ways along with Means Committee said he has talked to President Donald Trump twice This specific week about 401(k)s.
“He’d like to raise the limits so people can save more in those plans. So do I. I think in which’s a not bad start,” Brady said.
Under current law, taxpayers can put a specified amount in 401(k) retirement savings plans without paying taxes upfront. Lowering the amount could help to raise tax revenue as the GOP looks for ways to offset across-the-board individual along with corporate tax cuts.
The amount workers can contribute to a 401(k) rises to $18,500 next year, up coming from $18,000 in 2017. People age 50 along with older can tack on a so-called catch-up contribution of $6,000.
Potential adjustments to the well-known retirement savings have been all over the map. On Monday, Trump emphatically tweeted in which “there will be NO change to your 401(k).” He called the 401(k) tax benefit a “great along with well-known middle class tax break in which works.”
@realDonaldTrump: There will be NO change to your 401(k). This specific has always been a great along with well-known middle class tax break in which works, along with the idea stays!
yet on Wednesday afternoon, the president appeared to back off in which tweet, calling 401(k) plans “very important.” Trump said he didn’t want a proposal to change them to “go too far.”
— CNBC’s Ylan Mui along with Jacob Pramuk contributed to This specific report.