Capitol Report: Advocates fear Trump tax plan may ‘Rothify’ 401(k) plans

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Advocates fear that a tax plan released by President Donald Trump and congressional leaders including Speaker Paul Ryan will immediately tax retirement plan contributions.

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 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.

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