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Washington

President Trump vows to protect 401(k) tax advantage

U.S. President Donald Trump

President Donald Trump tweeted Monday that the upcoming tax-reform effort will not change the tax incentives for defined contribution 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!" Mr. Trump tweeted.

The tweet most likely comes in response to talk last week that the tax-reform effort could result in a lower ceiling for tax-free contributions by DC plan participants.

Mr. Trump's position was welcomed by the Save Our Savings Coalition, a broad industry coalition formed to prepare for the coming tax-reform battle. While "thrilled" to see the president's tweet, the coalition said in a statement: "We will continue to work to ensure lawmakers do right by the middle class by preserving and expanding our retirement system as tax reform moves through Congress."