It appears 401(k) contributions won’t be affected by tax reform, but one industry veteran warns the process is still only just beginning—and that tax uncertainty is “unfortunately not likely to ever go away.”
Tag: Contribution Benefit Limits
Fifty-seven percent of Americans surveyed somewhat or strongly oppose reducing the maximum amount employees can defer pre-tax into a DC plan to $2,400 per year.
Find here a link to our sister publication’s chart denoting the 2018 maximum benefit and contribution limits set by the IRS, including current and historical limits on all types of tax-advantaged retirement accounts.
The contribution limit to defined contribution (DC) plans has been increased by $500.
An organization comprised of industry advocates and businesses is set out to expand Americans’ access to retirement plans and protect the system’s retirement tax incentives.
One retirement industry advocate says recent meetings on Capitol Hill have left him with the expectation that “we will start to see proposals soon that will have a number of provisions—good and bad—that alter the retirement system.”
A revenue ruling reveals compensation tables for use in determining contributions to defined benefit plans as well as the taxable wage based used in permitted disparity contribution formulas for DC plans.
“The Congress faces an array of policy choices as it confronts the challenges posed by the amount of federal debt held by the public—which has more than doubled relative to the size of the economy since 2007.”
“Rather than taxing income, the Progressive Consumption Tax would generate reasonable revenue by taxing the purchase of goods and services,” suggests Senator Ben Cardin.
The deferral limit for defined contribution plan participants remains unchanged at $18,000.
Absent employer action, an estimated 4.2 million white collar workers will become newly entitled to overtime protection, potentially impacting net pay and the treatment of benefits, especially nondiscrimination testing.
Obama is proposing to cap the accumulation into tax-deferred retirement accounts at $3.4 million.
A forthcoming book by Peter Brady at the Investment Company Institute suggests Americans across the income spectrum get a pretty even shake when it comes to retirement benefits.
The IRS announced it will not adjust most current contribution limitations for qualified retirement plans heading into tax year 2016, though some retirement-related tax breaks and other items have been adjusted.
A paper explores whether higher limits on 401(k) plan contributions encourage people to save more.
The proposals include universal retirement accounts and a change to the treatment of tax incentives.
A recent survey from Fifth Third Bank finds a vast majority of Americans cannot identify the Internal Revenue Service’s limits placed on annual tax-advantaged retirement plan deferrals.
Legislation has been introduced that would increase the cap on deferrals and matching contributions for safe harbor plans.
President Obama’s proposed budget once again looks to cap retirement plan savings to about $3 million per investor.
The U.S. Department of Treasury maintains the view that its myRA program is not subject to the extensive reporting, disclosure, fiduciary duty or other requirements of ERISA.