This enables corporations to expense their contributions at a higher tax rate, according to Cerulli.
Tag: tax reform
Fifty-one percent are not actively contributing to a 401(k) plan, Edward Jones found in a survey.
We recently covered a survey in which Americans reported an average bump in take home pay of $130.76 as a result of tax reform. Nearly 13% indicated they are going to use that money to save more for retirement.
It will only take a few pay cycles for folks to get used to seeing the extra money come in; thus the impetus is on plan sponsors to act today to directly encourage employees to consider putting some or all of their additional take-home pay into the retirement plan.
Nearly half of respondents to a LendEDU survey said they believe they will be able to retire sooner as a result of greater take-home pay due to tax reform.
“I work at a private tax-exempt hospital that sponsors a 403(b) plan, a 457(b) plan, and a 457(f) plan.
During a webcast sponsored by Mercer, implications of the AARP v. EEOC lawsuit ruling were discussed.
Mercer offers its list of key priorities for defined benefit (DB) plan sponsors for 2018.
The most common benefit changes organizations have made or are planning or considering include expanding personal financial planning, increasing 401(k) contributions and increasing or accelerating pension plan contributions.
A white paper unpacks aspects of the new law that will affect a wide range of retirement, benefits and payroll professionals.
Following the GOP tax cuts, plan sponsors may wish to coordinate administration of their loan offset rollover rules with their TPA, attorneys suggest, in order to avoid inadvertently defaulting participants' plan loans.
Among tips Mercer suggests is evaluating litigation vulnerability at a time when lawsuits against higher education 403(b) plan sponsors are higher than ever.
Michael A. Moran, with GSAM, says the firm expects voluntary contribution activity to continue into 2018, as defined benefit plan sponsors claim a deduction at their former, higher tax rate.
Newly leveraged ESOPs that borrow a large amount relative to their earnings could find their deductible expenses decrease.
“I have received so many emails etc. on tax reform, including articles that conflict with each other, that I am on information overload! Should I be worried?”
The American Retirement Association says that by lowering small business income tax rates to 27% but not applying that to taxes on 401(k) withdrawals for small business owners from the 35% individual tax rate, this creates a disincentive for small business owners to contribute to their retirement plan, or even offer one to their employees.
A tax reform bill was introduced by the U.S. House of Representatives.
In addition, tax-exempt employers would be subject to additional taxation rules.
The GOP tax reform proposal leaves 401(k) deferrals alone, but there are other significant reforms in the package that would change the treatment of hardship withdrawals and in-service distributions for DC, DB and 457 plans, among others.