House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyHouse panel advances key portion of Democrats' .5T bill LIVE COVERAGE: Ways and Means to conclude work on .5T package LIVE COVERAGE: Tax hikes take center stage in Ways and Means markup MORE (R-Texas) suggested Wednesday that a tax bill could still make changes to 401(k) plans and other retirement savings programs, even as President Trump suggested in a tweet that no alterations would be made.
"We think in tax reform, you can create incentives for Americans to save more and save sooner, which can help them," Brady said at a breakfast hosted by the Christian Science Monitor. "So we are exploring a number of ideas in those areas."
The financial industry has heard that lawmakers are considering significantly lowering the amount that people can contribute to 401(k)s on a pre-tax basis in an effort to help raise revenue to pay for tax cuts. Following news reports about this idea, Trump tweeted on Monday that "there will be NO change to your 401(k)."
When asked Wednesday if the 401(k) changes are dead in light of Trump's tweet, Brady did not give a clear answer but said that lawmakers are looking at ways to boost the amount that Americans can save for retirement.
He added that lawmakers are "working very closely" with Trump and that the president shares their goals.
"We are continuing discussions with the president, all focused on saving more, saving sooner," Brady said.
Earlier in the week, Brady said that Trump's tweet does not impact the Ways and Means Committee's plans on the 401(k) issue.
Brady expects his committee to release a tax bill on Nov. 1, so long as the House passes the Senate's budget resolution on Thursday. The budget measure would allow Republicans to pass tax legislation on a party-line vote.