Okay, I know the NY Post is usually alarmist but I have heard about this idea before. The idea supposedly being kicked around is to limit the amount employees and employers can put towards the employee’s 401(k) to a maximum of $20,000 or 20% of income, whichever is smaller. The current amount is a maximum of $50,000. I hope this does not happen as it sounds like a dumb idea to me.
Shouldn’t we be ENCOURAGING people to save towards retirement? The new rule would affect my wife’s 401(k) drastically at a time when we really should be saving as much as we can.
It always makes me laugh when I hear “experts” talk about how much a certain action will bring in tax revenues. Things NEVER work the way politicians plan.
It’s not clear from the article what happens to the accounts at retirement as to whether or not the withdrawals would be taxed.