Provisions in the tax bill will affect advisers and their clients alike.
While pre-tax 401(k) contribution limits are off the table (for now), the Republican tax bill nonetheless makes changes to retirement savings plans.
Market-driven gains and active-fund outflows mean high distributions.
The proposed measure leaves 401(k) plans alone, but makes sweeping changes in many other areas, including mortgages, property taxes, pass-through income and charitable deductions.
Clients may need to navigate shifting tax brackets, re-characterizations of Roth IRA conversions, reconsidering the value of charitable contributions, and restrictions on the mortgage interest deduction.
Proposed legislation is designed to give manufacturers the lower 25% tax rate, not professional service firms such as financial advisers, lawyers and accountants.
If 401(k) pre-tax contributions are curtailed, several groups plan to launch nationwide campaigns against the effort.
He believes reducing the pre-tax contribution limit on traditional 401(k) plans and encouraging 'Rothification' would lead the middle class to save less for retirement.
Understanding options with residential deductions is a great way to add value for clients.
These underutilized strategies give financial advisers the edge with clients.
Sweeping bill to be released in just five days.
Despite the president's assurances that 401(k) plans would remain as they are, House Ways and Means Chairman Kevin Brady doesn't rule out changes to the retirement accounts.
GOP reportedly had been considering reducing the cap on the annual amount workers can set aside for 401(k)s.
Perhaps if the time allotted is expanded, cooler heads will prevail.
Mandated contributions to Roth accounts would likely only be partial, as opposed to having a full repeal of pre-tax accounts.
Government says cybercriminals have found ways to access life insurance and annuity accounts.
Losing big deductions, even in lieu of a larger standard deduction, may cause taxes to rise in retirement.
Largest cost-of-living adjustment since 2012 may be offset for some by higher Medicare premiums.
Keeping the deduction means losing the $1.3 trillion in revenue its repeal was expected to produce.
President would argue middle class stands to benefit from corporate tax cuts.
