--- title: 'Your Retirement Just Dodged a Bullet: GOP Backs Off 401(k) Limits' description: People on edge over possible cuts to 401(k) contribution limits can breathe easy — for now — after the new GOP tax plan was released authors: - name: Jennifer Calfas url: https://money.com/author/jennifer-calfas/ at_money_since: 2017 articles: 339 covers: - Retirement - Banking - Business - Career Advice - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Personal Finance - Pets - Shopping - Taxes - Technology social: - https://x.com/jencalfas former_staff: true published: '2017-11-02T20:45:17.000Z' modified: '2024-04-17T07:11:13.000Z' section: Retirement tags: - looking forward - onetime - Retirement - Taxes - lookingforward word_count: 380 canonical: https://money.com/401k-contribution-limits-gop-tax-plan/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Cash in a jar marked 401k](https://img.money.com/2017/11/401k.jpg) Retirement savers with [401(k) accounts](https://money.com/smart-choices-401k-at-retirement-fiduciary-rule/) can relax — at least for now. The [Republican-backed tax reform legislation](http://time.com/5007349/gop-house-tax-plan/?xid=homepage) released Thursday did not propose any cuts to contribution limits to 401(k) retirement plans — a move lawmakers were reportedly considering to help balance the tax cuts planned for high-income earners and businesses. According to the language in the [tax reform proposal](http://time.com/5007611/trump-tax-plan-republican-reform/?xid=homepage), it appears 401(k) tax-free contribution limits will stay at $18,000. For savers ages 50 and over, that limit is still $24,000. (It's worth noting the contribution limit [will increase](https://money.com/401k-ira-contribution-limits-2018/) by $500 next year for savers under the age of 50, the IRS announced in October.) [Reports](https://www.nytimes.com/2017/10/20/us/politics/republicans-tax-401-k.html) of Republicans considering axing the 401(k) contribution limit by thousands stoked fear in savers who, through their 401(k)s, contribute tax-free money to save up for retirement.. The potential cut to limits was [criticized by Democrats](https://twitter.com/SenatorBaldwin/status/925814200961658880) — and was [denied by President Donald Trump](https://time.com/4998927/401k-donald-trump-tax-reform/) before the tax reform legislation was released. "There will be NO change to your 401(k)," Trump tweeted in late October. "This has always been a great and popular middle class tax break that works, and it stays!" > 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! > > — Donald J. Trump (@realDonaldTrump) [October 23, 2017](https://twitter.com/realDonaldTrump/status/922428118685581313?ref_src=twsrc%5Etfw) [https://platform.twitter.com/widgets.js](https://platform.twitter.com/widgets.js) The bill's lack of changes to contribution limits to retirement plans pleased the [Investment Company Institute](https://www.ici.org/pressroom/news/17_news_tax_reform), an association of U.S. investment companies, and the [American Benefits Council](https://www.americanbenefitscouncil.org/pub/e589cb3a-b76e-11bb-bcdf-8afb64932896), a trade organization that advocates for employer-sponsored benefits. Several politicians and retirement savers took to Twitter to share their relief after the legislation came out Thursday. > The House tax reform proposal won't touch workers' retirement savings - and that's good news. My full statement: [pic.twitter.com/FMPx2dg1fz](https://t.co/FMPx2dg1fz) > > — Sherrod Brown (@SenSherrodBrown) [November 2, 2017](https://twitter.com/SenSherrodBrown/status/926095199998304262?ref_src=twsrc%5Etfw) [https://platform.twitter.com/widgets.js](https://platform.twitter.com/widgets.js) > Happy to hear the cap of 401k [#retirement](https://twitter.com/hashtag/retirement?src=hash&ref_src=twsrc%5Etfw) saving has been abandoned. [#investing](https://twitter.com/hashtag/investing?src=hash&ref_src=twsrc%5Etfw) [#law](https://twitter.com/hashtag/law?src=hash&ref_src=twsrc%5Etfw) [#TaxReform](https://twitter.com/hashtag/TaxReform?src=hash&ref_src=twsrc%5Etfw) [https://t.co/T29GCkCQfp](https://t.co/T29GCkCQfp) > > — John I Sanders, Esq. (@js\_avvamericano) [November 2, 2017](https://twitter.com/js_avvamericano/status/926061085429583873?ref_src=twsrc%5Etfw) [https://platform.twitter.com/widgets.js](https://platform.twitter.com/widgets.js) > Great news for [#retirement](https://twitter.com/hashtag/retirement?src=hash&ref_src=twsrc%5Etfw) plans: [#401ks](https://twitter.com/hashtag/401ks?src=hash&ref_src=twsrc%5Etfw) in the clear under [#tax](https://twitter.com/hashtag/tax?src=hash&ref_src=twsrc%5Etfw) reform proposal [https://t.co/caOfYrHIwI](https://t.co/caOfYrHIwI) > > — Bonnie Treichel (@btreichelesq) [November 2, 2017](https://twitter.com/btreichelesq/status/926105387622834181?ref_src=twsrc%5Etfw) [https://platform.twitter.com/widgets.js](https://platform.twitter.com/widgets.js) Outside of retirement, the proposed legislation — known as the Tax Cuts and Jobs Act — lowers the corporate tax rate by 20% and reduces the number of tax brackets from seven to five, among other measures. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/401k-contribution-limits-gop-tax-plan/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Retirement", "item": "https://money.com/retirement/" }, { "@type": "ListItem", "position": 3, "name": "401(k)", "item": "https://money.com/401k/" }, { "@type": "ListItem", "position": 4, "name": "Your Retirement Just Dodged a Bullet: GOP Backs Off 401(k) Limits" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/401k-contribution-limits-gop-tax-plan/#webpage", "url": "https://money.com/401k-contribution-limits-gop-tax-plan/", "name": "Your Retirement Just Dodged a Bullet: GOP Backs Off 401(k) Limits", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2017-11-02T20:45:17.000Z", "mainEntity": { "@id": "https://money.com/401k-contribution-limits-gop-tax-plan/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/401k-contribution-limits-gop-tax-plan/#breadcrumb" }, "dateModified": "2024-04-17T07:11:13.000Z" }, { "@type": "Article", "headline": "Your Retirement Just Dodged a Bullet: GOP Backs Off 401(k) Limits", "articleSection": "Retirement", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2017/11/401k.jpg", "width": 4732, "height": 3691, "caption": "Cash in a jar marked 401k" } ], "author": [ { "@type": "Person", "name": "Jennifer Calfas", "url": "https://money.com/author/jennifer-calfas/", "@id": "https://money.com/author/jennifer-calfas/#author", "sameAs": [ "https://x.com/jencalfas" ] } ], "publisher": "https://money.com/#organization", "datePublished": "2017-11-02T20:45:17.000Z", "description": "People on edge over possible cuts to 401(k) contribution limits can breathe easy — for now — after the new GOP tax plan was released", "abstract": "People on edge over possible cuts to 401(k) contribution limits can breathe easy — for now — after the new GOP tax plan was released", "@id": "https://money.com/401k-contribution-limits-gop-tax-plan/", "inLanguage": "en-US", "dateModified": "2024-04-17T07:11:13.000Z", "wordCount": 380, "keywords": [ "looking forward", "onetime", "Retirement", "Taxes", "lookingforward" ], "about": [ { "@type": "Thing", "name": "Retirement", "sameAs": [ "https://en.wikipedia.org/wiki/Retirement" ] }, { "@type": "Thing", "name": "401(k)", "sameAs": [ "https://en.wikipedia.org/wiki/401(k)" ] } ] } ] } ```