The White House and Congress has been evaluating whether to reduce the pre-tax 401(k) contribution limit to potentially as low as $2,400 from $18,000. The move is a way to boost revenue as the government looks to cut taxes.
Economists and budget hawks call this a “budget gimmick,” since it would simply shift revenue that the federal government would collect to the future — essentially, a one-time cash boost.
While Rep. Kevin Brady (R-Tx), the GOP’s chief tax writer in the House, may be looking for immediate income, he told Yahoo Finance at the All Markets Summit that he wants to encourage people to save more — and was looking for alternative means, besides 401(k)s.
Click here to read the article on Yahoo Finance.
