How a $2.4K cap on 401(k) deductions would affect future retirees

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How a $2,400 cap on 401(k) deductions would affect your savings
A study by the nonpartisan Employee Benefit Research Institute shows that the proposal to limit the 401(k) tax deductions would affect 55 million Americans of all ages and income levels, according to this article on The Wall Street Journal. Findings reveal that workers earning $10,000 t0 $24,000 every year contribute an average of $3,203 of their annual salary, with those earning $100,000 or more contributing 87% of $11,112 on average to their 401(k) plan every year. 401(k) participants in the 25-34 age bracket contribute an average of $3,169 while those in the 55-64 age bracket save $7,287 on average each year, the study found.
Ask Larry: Should I file and suspend?
A retiree would be better off filing a restricted application for Social Security divorced spousal benefit only, instead of filing and suspending her own retirement benefit before filing for her divorced spousal benefit, according to this article on Forbes. That's because the file-and-suspend option would prevent her from receiving her divorced spousal benefit. She should apply for restricted application and then shift to her own retirement benefit when she turns 70.

How to maximize your Social Security benefits
Retirees are advised to rebalance their investment portfolio so that it can provide the needed income for longer period of time, according to this article on Kiplinger. This would allow them to delay their Social Security as long as they can and increase the monthly benefit payout when they start collecting it. When rebalancing, retirees are advised to move towards bonds and other safety assets.

What the battle over 401(k) plans means for your retirement
Clients should be saving early and aggressively even if Congress makes changes to the way 401(k) savings are taxed, according to this article on CNBC. However, experts voiced concern over the proposed re-write. "We would not be talking about this except for the budget gains," says an expert. "I think the risk of people substantially reducing their contributions because they no longer see the benefit of an immediate deduction is very high."

Slashing 401(k) limits to fund budget is like 'robbing Peter to pay Paul'
Lawmakers are mulling a reduction in 401(k) contribution limits as a way to raise revenue to cover losses from the GOP tax plan, according to this article on Yahoo Finance. However, this could also mean tax losses in the future, when taxes on current contributions will be paid as retirees start withdrawing the funds. “The revenue will have to be found in the future. It’s robbing Peter to pay Paul," says an expert.

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Retirement planning 401(k) Social Security Social Security benefits