After word leaked that proposal for tax reform may include a provision limiting pre-tax salary deferrals to $2,400, President trump said any proposal limiting deferrals wasn\u2019t likely. Then about a day or so later, Trump said that discussion about limiting deferrals would be on the table.<\/p>\n
Before anyone with an ax to grind against the President, the fact is he really has no idea what will be in a tax reform proposal until he sees it. There are going to be many discussions as to which tax deductions will be sacrificed to achieve lower tax rates, so I think the $2,400 proposal will be considered. Quite honestly, I think that low number is absurd and won\u2019t sustain inclusion when at least 2 Senate Republicans will fight it. Maybe they lower the tax-deferred limit to $9,000 or maybe they will lower the 401(a)(17) recognized compensation limit like they did in 1986 and 1993, but I think $2,400 is an absurd amount when defined benefit plans have been phased out and Social Security becoming more and more like a Ponzi scheme for people my age and younger.<\/p>\n
I wouldn\u2019t take stock into what the Presidents says what will happen, I will only take stock of what the tax reform bill will look like and its chances to pass and become law. Until then, your guess is as good as mine.<\/p>\n
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