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Home>Advocates fear Trump tax plan may 'Rothify' 401(k) plans

Advocates fear Trump tax plan may 'Rothify' 401(k) plans

Advocates fear Trump tax plan may 'Rothify' 401(k) plans


By Robert Schroeder, MarketWatch

Plan encourages 'retirement security,' but details are to be determined

The tax plan released Wednesday by President Donald Trump and top Republicans includes a mention of retaining benefits for retirement security. But savings advocates are still worried.

Last summer, lawmakers were reportedly (http://www.politico.com/story/2017/08/22/trumps-team-and-lawmakers-making-strides-on-tax-reform-plan-241873) discussing taxing money workers put into their 401(k) savings plans up front as a way to raise billions of dollars. The plan released by Trump and Congress leaves paying for major tax cuts up to Congress, and while Trump's top economic adviser Gary Cohn says growth will pay for those cuts, lawmakers are still eyeing revenue-raisers.

Read: Trump, Republicans to propose scrapping state and local deduction in tax overhaul (http://www.marketwatch.com/story/trump-republicans-to-propose-scrapping-state-and-local-deduction-in-tax-overhaul-2017-09-27).

That's where Brigen Winters of the Groom Law Group worries retirement savings could come in.

"Our fear is that it's still on the table," Winters says.

Winters is working with a group dubbed the Save our Savings Coalition, whose members include the AARP, the National Association of Insurance and Financial Advisers, and T. Rowe Price (TROW) .

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