NAIFA, Industry Respond to Republican Tax Framework

The White House and Republican leaders in Congress today released their “Unified Framework for Fixing Our Broken Tax Code” proposal for comprehensive tax reform. The nine-page document does not include full legislative details, but establishes principles for the tax writing committees to follow to cut tax rates for individuals and businesses with an “aim to maintain or raise retirement plan participation of workers and the resources available for retirement.”
 
The Save Our Savings coalition, of which NAIFA is a member, issued a response praising the framework’s sentiment in favor of protecting retirement savings. “The Coalition, representing millions of American consumers, families and retirees, was heartened to see that the tax reform proposal did not include misguided policies to reduce savings incentives and tax retirement accounts,” the release said.
 
However, coalition members remain concerned about proposals by some members of Congress advocating the “Rothification” of retirement accounts, whereby the government would require the immediate taxation of retirement contributions rather than allowing some accounts to be tax-deferred.
 
“Insurance and financial advisors know better than most the importance of the tax code in promoting retirement savings and preparedness among American workers,” said NAIFA CEO Kevin Mayeux. “The acknowledgment by the administration and Republican leadership that reform should protect retirement savings and encourage workers to prepare is positive news for advisors and, particularly, for the American public they serve.
 
“We agree with our coalition partners that retirement savers and employers benefit from having access to plans that incentivize savings. Plan designs that make it easier for participants to prepare for retirement, including ROTH and tax-deferred options, will help retirees achieve their retirement goals.
 
“We look forward to reviewing the details when legislative language becomes available, and will work with the administration and members of Congress to ensure that specific measures will have the best possible benefit for advisors, their clients, and the nation as a whole.” 
 
  • Posted September 27, 2017 IN


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