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Neighbors Growing Together | Nov 24, 2017

Grassley: ‘Saving, planning and frugality should be rewarded’

Oct 26, 2017

By Ed Tibbetts, Quad-City Times

 

The possibility of limiting the amount of money that people could put into their tax deferred retirement plans doesn’t appear to sit well with U.S. Sen. Chuck Grassley, R-Iowa, a key member of the Senate Finance Committee.

“The tax reform framework’s stated goal is to maintain or raise retirement plan participation of workers and the resources available for retirement. I agree with that goal. Saving, planning and frugality should be rewarded,” Grassley said in a statement Monday.

The New York Times reported last week that House Republicans were considering placing limits on the amount of contributions that people could put into 401(k) retirement savings plans. Currently, people can put $18,000 in tax deferred funds into retirement plans. It’s up to $24,000 for people over 50.

The plan under discussion would limit it to $2,400, the Times reported. That would have resulted in tax savings for the government and could have gone to cover the cost of other tax cuts.

It appears such a plan doesn’t have much shelf life, though. President Donald Trump tweeted early Monday that he wouldn’t support it.

Democrats also have been critical.

Grassley’s comments came in a request for his response. The Finance Committee would have jurisdiction over any tax cut plan, and Grassley is a key member.

Sen. Joni Ernst’s office, meanwhile, responded that negotiations are ongoing.

“Senator Ernst will continue working with her colleagues to simplify and streamline our tax code in order to keep more hard-earned dollars in the pockets of Iowans,” an email from her office said.

Rep. Dave Loebsack, D-Iowa, voiced his opposition.

“I do not believe that we should be cutting taxes for millionaires and billionaires while attacking the hard earned nest egg of working families,” he said in a statement.

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