Wealth & Risk Management Blog

William Byrnes (Texas A&M) tax & compliance articles

401(k) Contribution Cuts are Still on the Table

Posted by fhalestewart on October 25, 2017


In 2009, F. Hale Stewart, JD. LL.M. graduated magna cum laude from Thomas Jefferson School of Law’s LLM Program.  He is the author of three books: U.S. Captive Insurance LawCaptive Insurance in Plain English and The Lifetime Income Security Solution.  He also provides commentary to the Tax Analysts News Service, as well as economic analysis to TLRAnalytics and the Bonddad Blog.  He is also an investment adviser with Thompson Creek Wealth Advisors.    

 

From the Washington Post:

House Ways and Means Committee Chairman Kevin Brady on Wednesday suggested a tax bill he is preparing to introduce could force changes to 401(k) plans and other retirement accounts, potentially bucking a promise from President Trump that those accounts would be left alone.

Brady, speaking at a breakfast hosted by the Christian Science Monitor, said “we think in tax reform we can create incentives for people to save more and save sooner.”

He said he was “working very closely with the president,” but he also said many people who have tax-incentivized retirement accounts contribute $200 per month or less, a level he thought was too low.

…..

Several hours later, Senate Finance Committee Chairman Orrin Hatch (R – Utah) said he would also not agree to Trump’s vow to protect 401(k) plans, saying instead that he was open to changes if they made sense.

This situation is VERY fluid.  According to the same article, key provisions of the bill such as the actual tax brackets and specific deductions are still being hammered out.

 

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