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GOP lawmaker says tax plan could preserve 401(k)

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Posted at 10:35 PM, Nov 01, 2017
and last updated 2017-11-01 22:35:03-04

House Republicans are leaving intact 401(k) retirement plans popular with the middle class.

That's according to a senior House GOP lawmaker. The development comes as Republicans are scrambling to assemble a complete draft of their long-awaited plan to dramatically rewrite the tax code.

Republicans like Ways and Means Committee Chairman Kevin Brady had hoped to reduce 401(k) contribution limits, in part to generate new tax revenues in the near term to finance cuts to income tax rates.

Brady, a Texas Republican, is instead planning on maintaining the limits where they are. Another lawmaker cautions that the decision might still change.

The lawmakers required anonymity because the tax panel is trying to keep its deliberations secret until the tax measure is released Thursday.