Shares of T. Rowe Price and other asset managers rose Thursday after the House Republican tax plan preserved popular retirement savings plans, including 401(k)s.
Shares of the company rose 1.8 percent Thursday after slipping about 4 percent over the past two weeks on fears that legislators in Washington were considering reforms to the popular savings plan.
Certain Republican lawmakers had toyed with the idea of cutting contribution limits to $2,400 as Congress looked to make up for other tax cuts. Rep. Kevin Brady, R-Texas, a top tax writer in the House of Representatives, said cuts to how much people can contribute were still on the table as recently as last week.
The GOP tax plan leaves current contribution limits in place, meaning $18,000 for 401(k) plans for 2017. Those 50 and over can contribute as much as $24,000.
Experts were concerned that lowering limits on pre-tax 401(k) contributions would indirectly encourage workers to save less for retirement. Most Americans already save too little for their retirement needs.
The Republican tax reform plan will also permanently lower the corporate tax rate to 20 percent.