President Donald Trump tweeted Monday there will be no change to a favorite retirement savings plan under the brand new GOP tax bill.
“There will be NO change to your 401(k). This kind of has always been a great and also also also favorite middle class tax break that will works, and also also also This kind of stays!” Trump said in a tweet.
Right at This kind of point, taxpayers can set aside a certain amount in 401(k) retirement savings plans without paying taxes up front. Recent discussion has raised lowering that will tax-deferred amount in order to boost tax revenue.
Meanwhile, the Internal Revenue Service has announced higher contribution limits for 2018.
Next year, workers can contribute up to $18,500 in their 401(k), up by $18,000 for 2017. For those age 50 or older, a so-called catchup contribution of $6,000 is usually permitted for a total of $24,500.
Lawmakers discussed reducing that will tax-deductible amount to as low as $2,400, according to published reports. that will’s below the $5,500 allowed for Individual Retirement Accounts (having a $1,000 catchup contribution for those age 50 and also also also older).