Trump says 'no change' to 401(k)

By Leia KlingelMarketsFOXBusiness

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The retirement industry was spooked last week following a rumor that Republican lawmakers were considering a significant cut to the amount of money Americans could contribute to their 401(k) pre-tax, in order to increase revenue while supporting the proposed individual tax rate reduction in their tax reform plan.

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U.S. President Donald Trump squashed the odds of such a rule passing, however, tweeting on Monday: “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!”

Lawmakers reportedly wanted to cap pre-tax 401(k) contributions at $2,400 per year. Currently, the amount of money that Americans can contribute, tax free, to their 401(k) is $18,000 per year for employees under 50, and $24,000 for employees over 50.