Tax Reform: Could It Affect Your Retirement Savings?

Will the current tax overhaul initiatives facing Congress affect your savings retirement plan? An estimated 52 million American workers now have over $4 trillion, in more than half a million 401(k) plans[1]. That’s an enormous slice of the population that is now worrying about potential tax ramifications to their retirement savings accounts.

The most recent tax news regarding 401(k) plans was ambiguous at best. On April 27, it was announced that 401(k) plans and other retirement savings plan vehicles may be vulnerable. Less than 24-hours later there was further clarification from the White House. And for now, it appears that 401(k) retirement plans won’t be part of President Trump’s tax overhaul. The additional briefing clarified, “Trump’s plan would not, in fact, affect 401(k) contributions.”[2] The retirement savings industry is anxiously staying on top of recent news developments, specifically how tax reform proposals may affect 401(k)s and other retirement savings vehicles.

Michael Kiley, CEO of PAi and a financial expert, sat down and talked to Mark Leland of Fox 11 TV in Green Bay regarding the legislative push in 2017 for tax reform and the implications it could have on national retirement savings efforts.

Kiley noted, “The leading proposal for tax reform includes what we refer to as the “Rothification” of 401(k), in other words, making your 401(k) contribution and your Roth IRA contributions nondeductible. 100% non-deductible, 50% non-deductible, that’s what’s being bounced around.” Watch the video: Will your retirement savings be affected? 

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PAi’s 401(k) services stay on top of current and pending legislation that may affect your 401(k). This means you have more time to spend on what’s most important to you; managing your business. Let’s start with a conversation. Contact us online or give us a call to get your plan started: 800.236.7400.

The debate over tax reform is far from a done deal. Legislators are still discussing what should and shouldn’t be included in the reforms.  Let us know: Do you feel retirement savings accounts should be considered in the tax reform debates?

Sources:

[1] www.401kspecialistmag.com A Simple Solution to the 401(k) Fee Lawsuit Frenzy. Retrieved from: https://401kspecialistmag.com/simple-solution-401k-fee-lawsuit-frenzy/

[2]www.401kspecialistmag.com Trump Administration Causes, Clears 401k Tax Status Confusion.  Retrieved from: https://401kspecialistmag.com/trump-administration-causes-cleras-401k-tax-status-confusion/

www.investopedia.com. Congress May Take Away Your 401(k) Tax Deduction. Retrieved from: http://www.investopedia.com/retirement/congress-may-take-away-your-401k-tax-deduction/

www.Fox11Online.com Retirement Reality Check. Retrieved from:  http://fox11online.com/news/town-hall-news/retirement-reality-check