Are 401(k)s Off the Tax Reform Table — Or Not?
President Trump may have thought his tweet would have ended the controversy over a proposed partial Rothification of 401(k)s — but that was Monday.
While heading off on Marine One on Oct. 25, the President was asked about his comment that any changes to tax-free contributions to 401(k)s were off the table. “I wanted to end that quickly,” Trump responded
, going on to note that, “401(k)s, to me, are very important. And they’re important because that’s one of the great benefits to the middle class. I didn’t want that to go too far. That’s why I ended it very quickly.”
But then the reporter noted that Chairman of the House Ways and Means Committee Kevin Brady (R-TX) had earlier that day said that it could be on the table. At a Yahoo Finance conference earlier in the day Brady said: “At the end of the day, we’re looking at encouraging people to save more and save early… We’re looking through a number of ideas. No decisions have been made. At the end of the day, retirement will be strengthened or it will remain as it is.”
To which the President said, “Well, maybe it is, and maybe we’ll use it as negotiating. But trust me, that’s one of the great things. You know, there are certain elements of deals you don’t want to negotiate with. 401(k)s — and Kevin knows it, and I think Kevin Brady is fantastic, but he knows how important 401(k)s are.”
Resolved? I think not.