That is why we have IRA accounts and many of us have 401(K) plans. But the GOP is seriously considering killing off our 401(k) plans. Well, technically, they are not, but the effect will be to kill them.
Right now, you can add a good bit of money to your 401(K) and have that money deducted from your gross income. That benefits you now because it lowers your income for tax purposes right now and allows that money to grow. It’ll then be taxed later in life when it comes out of the 401(K) and the odds are that you will be at a lower tax rate.
Because of that, the GOP wants to drastically cut back what you can contribute to your retirement plan pre-tax. This would hurt millions of Americans and further ensure the GOP is no longer a party of the college educated, the white collar, or really anyone with any measure of success.
If they did this, the GOP would deserve complete annihilation. Right now the party is fighting between a Trump wing and an Establishment wing. Thankfully, this morning President Trump said no way. He will oppose any GOP effort to curtail the 401(K). For many, it will be a crazy thing to see the GOP in Congress propose this and Trump save it. But it shows again how much better the President’s political instincts are than most members of Congress.