Neal Opposes GOP-Proposed Cap on Retirement Savings Contributions
Washington, DC – Today, U.S. Representative Richard E. Neal released the following statement regarding the reports of a cap on retirement savings in 401(k) plans as outlined in the GOP tax reform proposal.
“America is in a crisis,” said Representative Neal. “Few people save enough to live comfortably for the years after they stop working. One vehicle for saving for retirement that people do use is their 401(k) plan. Reports on the GOP tax reform proposal, however, indicate that there would be a cap as to how much money individuals are able to contribute to their plan on a pre-tax basis. This cap scheme would harm Americans’ ability to prepare for retirement by providing less of an incentive to save and decreasing small business’ incentive to sponsor retirement plans. Taxing workers retirement savings now with a promise of tax savings in 40 years only worsens our nation’s retirement crisis. The Republicans are phasing out savings to pay for a tax cut for the people at the top. Democrats are trying to make it easier for people to plan for their future.”