RETIRMENT TAX FREE ONLINE WEBINAR – MARCH 15, 2021 8:30am EST
Retirement Plan Tax Reform is coming. Is your plan ready?
With any new Administration comes tax reform and change, but in midst of the global pandemic those changes will have more bite for employers than many realize.
Biden is focused on reversing many Trump tax reforms, but it’s likely these will be focussed on high earners and corporations. Which, of course, means employers will have to figure out where it will all land, and how it will affect them today and long into the future.
Biden has already spoken of reshaping employer-sponsored retirement plans by equalizing the tax benefits of contributing to a retirement plan so that higher-income earners won’t get more of the benefit than the lower-income workers. For example, someone in a 37% tax bracket is able to deduct the full amount of a retirement plan contribution, so $37 for every $100 pre-tax contribution. That’s a greater tax benefit than someone in a lower tax bracket, such as 20%, who would receive a $20 deduction for each $100 pre-tax contribution. The idea proposed by the Biden administration is to offer a tax credit to low- and moderate-income workers, resulting in an equal tax benefit.
Democrats are also pushing for employers to make retirement saving easier for the U.S. workforce. It’s likely that employers who don’t offer retirement plans would be required to allow employees to make contributions to individual retirement accounts and those contributions would come directly from paychecks.
At first pass it seems that over a decade, Biden’s proposed changes to the law could net just $500 billion in additional revenue. In contrast, he has proposed roughly $2 trillion in tax increases unrelated to the law.
Join Ron and the CPD team for virtual coffee, insights & networking at this expanded online event (using the Remo platform – a welcome break from Zoom) that allows for networking as well as viewing the presentation. And it’s free!
Learn about opportunities to put your plan in the best position to weather reform, make immediate tax savings & maximize your investment in your retirement.