President Trump described his tax reform plan: “It’s cuts and it’s relief and it’s also reform. And frankly, it’s also simplification. So we’re covering everything.” Many people are anxious to see the details. (Alex Brandon/AP)
Will they or won’t they. I don’t know about you, but I’m getting very anxious about the tax reform Republicans are promising.
Will middle-income families see a meaningful tax break?
Will state and local tax deductions stay or go? Is the mortgage interest deduction in jeopardy?
And what about the talk to reduce the tax deductibility of 401(k) contributions?
Any day now we’re supposed to know our tax fate or fortune.
On Wednesday, President Trump said, “There’s never been anything like this in the history of our country. It’s cuts and it’s relief and it’s also reform. And frankly, it’s also simplification. So we’re covering everything.”
We shall see. But in the meantime, here’s some reading on how tax reform may affect your money.
“The biggest potential change is slashing the maximum limit on pre-tax 401(k) contributions to $2,400 a year, down from the $18,000 IRS limit for Americans under 50 and $24,000 for Americans 50 or older in 2017. That would mean savers would be able to stash away fewer dollars in their accounts before income tax is calculated.”