What Is Washington Doing to My 401(k) Tax Break?
May 11, 2017
Twitter had a brief freakout last week after White House spokesman Sean Spicer seemed to suggest that pretax 401(k) contributions to retirement savings were in danger. The White House hastened to say that wasn’t part of the proposed tax overhaul it’s trying to move through Congress.
But Washington, and the money management industry, are abuzz with rumors. Will Roth 401(k)s and Roth Individual Retirement Accounts, which are funded with after-tax money, take on a greater role, even a starring role, in our retirement planning? If so, what will that mean for our finances later in life? The prospect of an upheaval is making a lot of employers who offer retirement plans—and, no doubt, a lot of aspiring retirees—nervous.
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