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Originally Posted by Cornstock
I guess this would increase tax revenue in the near term.
The big gamble for most people when it comes to ira's is whether they will actually have an advantage if their contributions are pre or post tax. It depends on so many variables between their personal income level as they enter retirement (which can be strategized) and what tax law will look like when they finally do retire. There is no way to predict legislative risk for someone like me, with an RMD horizon 40 years away.
But reducing the amount of tax shelter available between either of these is criminal for the middle class. people who are conscious enough to be investing at all will be forced to do so in a taxable account outside of a 401k (probably self directing), and incur significant capital gains repercussions in addition to all their investments being post tax. A Roth with no tax benefit.
Most people will not notice anything besides an increase in their take home pay, and will not invest the difference. Which will significantly harm their retirement picture.
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Looks like Trump took the correct stance on this. Good.
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WASHINGTON — President Trump said early on Monday that his proposed tax plan would not prompt any changes to Americans’ tax-deferred retirement plans, pushing back against reports that the Republicans are weighing a proposal that would significantly reduce the income workers can save in these popular programs.
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https://www.nytimes.com/2017/10/23/u...ax-budget.html