#Trump administration's "contradicting signals" on taxing 401(K) upfront

When I heard Republicans were planning (among other things) to tax 401(K) accounts upfront to pay for massive tax cuts for corporations & the wealthy, I was not surprised. Republicans control all branches of government, thus they can get away with this type of legislation. The GOP will just use Trump as a salesman, & since the Donald's an expert at doublespeak, his base will blindly believe anything he says without questioning any details.

Nevertheless, Trump denied it on Twitter: "There will be no change to your 401(K)" he tweeted.  

Of course, you can't trust anything Trump says (& he usually doesn't know what he's talking about policy-wise), therefore, markets were down today. Because (among other things), taxing 401(K)'s is back on the negotiating table:

"Tax Plan Worries, Tepid Earnings Halt Rally"

https://www.nytimes.com/reuters/2017/10/25/business/25reuters-usa-stocks.html

"(Reuters) - Wall Street's benchmark S&P 500 index was headed for its worst loss in seven weeks on Wednesday, with downbeat corporate earnings and contradicting signals on Republican plans for a popular retirement scheme weighing on sentiment."

"Contradicting signals" from Texas GOP rep & tax writer Kevin Brady. Here's more information from "Business Insider"... 

http://www.businessinsider.com/kevin-brady-401k-retirement-savings-trump-tweet-tax-reform-2017-10

"Reports began circulating Friday that the tax legislation's writers were set to impose a $2,400-a-year limit on contributions to tax-deferred retirement accounts to help pay for coming effort to overhaul the tax code. Subsequent contributions would have to go in a Roth account, which is taxed up front, according to the talked-about changes in news reports.

Some feared the proposed change could depress how much Americans saved for retirement.

Despite Trump's promise that "there will be NO change to your 401(k)," Brady on Wednesday said potential tweaks were still on the table."

... And from CNBC:

"Top House tax writer suggests 401(k) changes could still happen, contradicting Trump"

• Rep. Kevin Brady leaves the door open to making changes to 401(k) retirement savings plans under the GOP tax bill.

• President Donald Trump had said Republicans would not revise 401(k) rules.
• Savers can currently put a specified amount in those plans without paying taxes upfront."
  • • https://www.cnbc.com/2017/10/25/rep-kevin-brady-says-401k-changes-could-happen-contradicting-trump.html

Besides the "contradicting signals" (more like flip-flopping) from the GOP, the down market was also affected by other reasons (like a string of disappointing reports):

http://www.marketwatch.com/story/sp-500-set-to-slip-hurt-by-chipotle-and-amds-earnings-driven-drops-2017-10-25

"Dow down by triple digits as stocks sag on a string of disappointing earnings"

"The stock market pared some of its losses Wednesday as investors sought a comfortable level to buy back into equities, though the Dow was still down by triple digits on a string of disappointing earnings reports.

A recent series of record closes, low volatility and stretched valuations were also cited as reasons for the cautious trading that is dominating much of the session."