It’s usually hard to say if a tweet is just a tweet or a policy declaration when it comes to President Trump’s Twitter feed, but his stance on congressional meddling with worker’s 401(k)s is clear: NO.
Trump is asking Republicans in Congress to get behind a tax reform package that would drastically reduce corporate taxes, but his Monday tweet made it clear the changes can’t come at the expense of average Americans.
“There will be NO change to your 401(k),” Trump wrote on Twitter Monday. “This has always been a great and popular middle class tax break that works, and it stays!”
Republicans are discussing proposals that would potentially cap contributions at $2,400 annually for 401(k) retirement accounts, according to reports. Currently, workers can sock away $18,000 a year in the tax-deferred plans and anyone over 50 can save up to $24,000 per year, tax free. The intent is to make up for revenue lost by proposed $6 trillion in tax cuts — mostly for companies, not individuals — with increases in other places.
Americans have increasingly turned to 401(k)s over the last 40 years to secure finances for their golden years, especially amid increasing doubts about the the future of Social Security and the phase-out of many traditional defined pension plans. Workers put a record average of $5,850 into their employer-backed retirement savings plans over the past year, according a summer report by Fortune, pushing account balances to an all-time high as “the average 401(k) account balance stands at $97,700 as of June 30.”