Dear Members,
Yesterday, the House Ways and Means Committee released the long-anticipated text of its comprehensive tax package to extend provisions of the 2017 Tax Cuts and Jobs Act. As we have mentioned to you in previous legislative updates, NAGDCA, and much of the broader retirement industry, was concerned that the Committee would consider eliminating some tax incentives in retirement plans to “pay for” other tax breaks.
So far, this is not the case. The current text of the bill does not contain any provisions harmful to government defined contribution plans or other retirement accounts, such as changing all accounts to Roth. However, as you may have read, the bill still has a long way to go before it is passed in its final form. The House has indicated that they want to pass their version of the bill by Memorial Day, and the President has said he wants to sign the bill on July 4th. Anything in the bill text could change between now and then.
NAGDCA has been working with an industry coalition called “Secure Our Savings” that has met with dozens of lawmakers to remind them of the importance of tax incentives in retirement plans. As this bill continues its path toward passage, we will continue to advocate for your plans to prevent any harmful provisions from being included at the last minute.
Sincerely,
Matt Petersen
Executive Director, NAGDCA