GOP May Use Retirement Accounts to Pay for Tax Cuts

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Multiple sources say Republican lawmakers may be setting their sights on Americans' retirement accounts to pay for tax cuts, specifically to the business tax rate. The New York Times reports Republicans are expected to release a tax reform plan sometime in the next few weeks, and that plan could include a drastic reduction in the amount of money workers are allowed to put into 401(k) accounts. 

Workers are currently allowed to contribute $18,000 annually to 401(k) accounts ($24,000 if they're over 50 years old), but sources say Republicans are considering capping contributions at $2,400 annually. It's unclear if the cap would also apply to IRAs, which are currently limited to $5,500 annually ($6,500 for workers over 50), according to the Wall Street Journal.

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