Trump says he may negotiate on 401(k) tax break

by Jordan Fabian - 10/25/17 3:10 PM ET

President Trump said Wednesday changes to retirement savings accounts could still be included in the Republican tax plan, backing away from his previous insistence they not be touched.

“Maybe it is and maybe we’ll use it as negotiating,” Trump told reporters at the White House.

{mosads}Trump was responding to comments from Rep. Kevin Brady (R-Texas), the top tax writer in the House, who said earlier Wednesday that lawmakers may still change the tax status of 401(k) plans to help pay for tax cuts.

The president indicated he prefers to protect the retirement plans, which he called “one of the great benefits of the middle class.”

“You know, there are certain elements of the deal you don’t want to negotiate with,” Trump said. “Kevin Brady is fantastic, but he knows how important 401(k)s are.”

GOP lawmakers are said to be considering lowering the amount of pre-tax dollars individuals can contribute to their 401(k) plans.

Days after news of that potential, Trump wrote in a tweet Monday that he doesn’t want to see changes to the plans.

“There will be NO change to your 401(k). This has always been a great and popular middle class tax break that works, and it stays!” he said.

Brady indicated Wednesday that changes are not dead.

“We think in tax reform, you can create incentives for Americans to save more and save sooner, which can help them,” he said at a breakfast for reporters. “So we are exploring a number of ideas in those areas.”

Tags 401(k) IRS Kevin Brady Retirement tax breaks