We can NOT allow the 401k/IRA deductions to go away. I suppose if we instituted a flat tax of 5% we could contemplate it, but otherwise NO. This would constitute a massive tax increase on the middle class, and yet another assault on savers. That this is being bantered about with a GOP president, Senate, and House, is disgusting.
That’s right. Do the right thing. Put money away. Suffer the slings and arrows of the stock market. And then have the government planners take this wealth vehicle away. (And it is a modest wealth vehicle at that!)
We don’t need revenue to pay for tax cuts. Cut government as one cuts taxes. That’s whole damn point.
(From The Chicago Tribune)
If you are counting on 401(k) savings to keep a roof over your head when you retire, don’t take your eye off tax reform negotiations in Washington.
Your 401(k) is vulnerable. And worse yet, if tax changes play out as some are proposing on Capitol Hill, you may have the extra burden of picking up the tab for millions of Americans who will go into retirement without enough saved to cover food, housing and other basic needs.
In the halls of Congress, one frequently mentioned way to raise more tax money for the federal government is to drastically change the way about half of Americans save for retirement. Roughly 54 percent of Americans have 401(k)s or other retirement savings plans at work, and the government currently tries to entice workers to participate in those plans by rewarding savers with a tax deduction on whatever they sock away. But the deductions could be on the chopping block as Congress looks for revenue sources to make up for other tax cuts.