Limited time offer: Sign up today and get up to 1 year managed free. See details

Get your next rollover managed free in 2018. Learn how to enroll

MarketWatch

The GOP tax proposal doesn’t touch 401(k) plans, but maybe it doesn’t matter

By Ali Malito

With a lower limit employees would be left to figure out how to save above and beyond that amount, according to Garrett Oakley, a financial adviser at Betterment, a New York-based robo-adviser. Even though so few people save more than $2,500, “the term ‘maxing out’ can insinuate you are saving enough, which for most employees, saving $2,400 is not enough to meet your retirement goals,” he said. Not reducing the amount also means people can stash away more money that is tax-deferred, where it is taxed at withdrawal but grows tax-free.

Read the Original Article

This article originally published November 3rd, 2017 on MarketWatch.