WASHINGTON, D.C. (NEXSTAR) – It’s money Americans count on for retirement. Now President Trump says the rules for 401k plans won’t change under his watch.
The President is firing back over reports that Congress is considering cutting the amount of tax-free money Americans can save for retirement. The government would then use the new revenue to help pay for tax cuts.
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
Len Burman, an economist with the non-partisan Urban Institute, said the math doesn’t add up.
“It won’t improve retirement security, it would be bad for the budget over the long term, it masks the problems with running deficits to pay for tax cuts.”
While Trump is ruling out 401k changes, the tax reform bill is still being written. On Tuesday, he will visit Capitol Hill to jumpstart the negotiations with his Republican colleagues.
Democrats are already standing up against the framework of the tax plan.
Senate Minority Leader Chuck Schumer said cutting deductions hurts too many people.
“How about instead of capping middle-class deductions or pilfering retirement savings, Republicans drop their repeal of the estate tax?”
“The problem is coming up with money to pay for tax rate cuts and everything, means you gotta take on politically popular tax breaks,” Burman said.
Experts admit convincing Congress to remove common and popular tax breaks won’t be an easy sell.