Letter: Keep tax-free 401(k) contributions

The news reports that Congress wants to massively reduce the amount the American middle class can contribute to 401(k) programs tax-free. Tax-free contributions to 401(k) programs are an incentive to save for the future and, for many of us, the only hope we have for retirement. They have no business taking that away from us so that they can pay for tax breaks that primarily benefit the richest Americans. Putting pretax money away allows significantly more money to compound and grow. Paying taxes upfront reduces the amount that is actually invested and could result in tens of thousands of dollars in lost growth over the course of one’s career. Plus, paying taxes upfront diverts money away from markets and instead puts it into the hands of the federal government, which is the opposite of “pro-business.” Members of Congress, senators and President Trump, keep your hands off my 401(k). Find another way to pay for your tax breaks, or don’t do them at all.

Jordan Sackley

Woods Cross

CREDIT: Jordan Sackley