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.”
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.
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.
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.
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 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.
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.