There’s talk of capping 401(k) contributions at $2,400 per year

Market Watch ^ | October 20, 2017 | Anne Tergesen and Richard Rubin

[C19fan]

Proposals floating around Washington to cap the amount that Americans can contribute before taxes to 401(k) plans and individual retirement accounts are unsettling professionals in the retirement industry.

Republicans are looking for ways to generate revenue to support broad reductions in individual tax rates. One idea is to limit the amount of pretax money households can sock away for retirement saving. Such a move would likely generate significant political blowback but it hasn’t been explicitly ruled out, stirring worry among industry lobbyists.

[C19fan]

/src on/Wonderful./src off/ Given my age social security will be kaput after the Boomers had their fill and now my ability to save for retirement will be crippled. This is a Peter/Paul situation. Under a traditional 401 k/IRA contributions are tax deductible but one pays income tax when the money is withdrawn. This plan is sacrificing revenue in the future to pay for so-called tax reform. gov;'t

[robroys woman]

Meh. 401k’s are a ripoff anyway.

Go Roth IRA.

[Kozak]

Looks like I’ll be cutting my hours to save on taxes.

[God luvs America]

never going to happen...

[pgkdan]

Republicans are looking for ways to generate revenue to support broad reductions in individual tax rates

IDIOTS!!!!

Yes, I screamed that at the top of my lungs.

[TexasFreeper2009]

This makes zero sense, and will never happen. If anything they will raise the amount.

The government wants people to save more.

[KarlInOhio]

I remember how long Obama’s trial balloon of eliminating 529 plans lasted. Hopefully this is shot down as quickly.

[TexasFreeper2009]

currently put in over $30,000+ a year when you include employer matching.

[Cementjungle]

Meh. 401k’s are a ripoff anyway.

Why do you say that?

[Grampa Dave]

More fake news from these lying liberals pretending to be concerned about our financial concerns/futures.

[House Atreides]

Ahh... there are ROTH 401Ks also.

[C19fan]

Understand but with a wife and two kids to educate, house and feed need all the after-tax income I can get.

[GoldenPup]

If the GOP does something as mega stupid as this, it will guarantee Maxine Waters will be elected POTUS in’20.

[DoughtyOne]

Sound like more made up stuff to stir the pot.

[kjam22]

The lie has been "invest in 401k's or IRA's as a way to reduce your tax, and then when you are living off of those accounts you'll be in a lower tax bracket anyway." That has not proved to be true in my case.

I think a savy investor should pay the tax on income as they go.

[Nifster]

Stupid Congress critters are trying to make this revenue neutral

They refuse to actually cut spending

[PGR88]

All the talk about tax-cuts, and no one talks about spending.

[Made In The USA]

Uh... wouldn’t reducing an incentive to contribute to retirement have the unintended consequence of people becoming more goobermint dependent in retirement?

And wouldn’t reducing the incentive to contribute to mutual funds often found in a 401K reduce investment?

My financial wizardry is lacking, the part about wizardry. So perhaps I have this wrong?

[robroys woman]

My brother is an SEC licensed investment broker, for 30 years. He considers 401k’s to be poison. We’ve talked enough about them for me to agree.

If they are all you got, they are better than nothing, but they are not all we have. Even “wage earners”. The roth IRA is MUCH better. I hear there is a Roth 401k now, but I don’t know anything about it other than it being a 401k.

Google the difference between them. You may be surprised.

[TexasFreeper2009]

surely they meant to say IRA not 401(k)