The top GOP tax writer in the House says he’s exploring a potential compromise with the White House, even as Republicans appear to be at odds with President Trump on whether retirement saving accounts are on the table as they launch into their tax reform efforts.
Rep. Kevin Brady, R-Texas, the chairman of the House Ways and Means Committee, said he spoke to Trump after their back-and-forth over 4010(k) accounts Wednesday, adding that Republicans could potentially end up raising overall contribution limits for 401 (K) and other retirement plans.
“We want to make it easier for people to save, and save more,” Brady told reporters Thursday.
The tax bill could raise the “overall” contribution limits, which would include pre-tax and post-tax contributions, Brady said. Earlier this week, Republicans were reportedly considering limits on pre-tax contributions, lowering the current $18,000 annual cap for workers to $2,400 for 401(k) contributions.
That change would help Republicans raise tax revenues to help offset tax cuts in the larger proposal, which they are planning to unveil Nov. 1 and review the following week.