From the 6/2 Kiplinger newsletter, the House GOP blueprint released last year alludes to the following changes affecting retirement savings:
It's interesting to me that these considerations are pro-Roth and anti-deduction. Very short-sighted, but no mention of taxing Roth distributions, limiting conversions, or instituting RMDs for Roth IRAs - yet.
Another consideration is to allow IRAs as S-corp shareholders. Trying to wrap my mind around that one.
- Reduction in the amount of pre-tax contributions to 401k plans. Up to 1/2 of the current employer contribution would qualify for pre-tax treatment ($9k or $12k if age 50+) with any excess directed into a Roth 401k,
- Ban all deductible TIRA contributions, but leave Roth IRA limits intact,
- Discontinue future SOLO-401k and SEP IRA plans (current plans would remain intact),
- Lower the cap on total retirement plan payins (ee and er), and
- Freeze the present contribution limits for employee plans and IRAs by suspending or doing away with annual inflation adjustments.
It's interesting to me that these considerations are pro-Roth and anti-deduction. Very short-sighted, but no mention of taxing Roth distributions, limiting conversions, or instituting RMDs for Roth IRAs - yet.
Another consideration is to allow IRAs as S-corp shareholders. Trying to wrap my mind around that one.
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