US. Retirement plans expected to be untouched in Senate tax reform bill
The full Senate is expected vote on its version of the tax reform bill as early as this week, and so far, it leaves 401(k) plans and IRAs untouched.
That can always change, however, says Erik Carter, senior financial planner at financial wellness company Financial Finesse, so it is important for employers to keep an ear to the ground as the bill makes its way through debate on the floor.
Currently, “retirement provisions in the bill are not intended to raise money. Most see them as policy improvements,” says Geoff Manville, principal and leader of the government relations team at Mercer’s Washington Resource Group. The bill would ease non-discrimination testing rules for closed pension plans, which is “aimed at enhancing retirement security and plan participation rather than raising money,” he says. “Some of those won’t have much of any revenue effect so they may be dropped because these won’t impact the federal budget.”
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