Tax Reform Illustrates the Importance of NAIFA Membership

“Laws are like sausages. It’s better not to see them being made.”
                        - Attributed to Otto Von Bismark (though he probably didn’t say it)
 
Dear friends,

Times like these are a big reason you are a NAIFA member.* Congress and the administration are deep in the sausage-making process of tax-reform. I don’t need to tell you how important tax laws are to the success of your family, your business, your clients, and our country. Though much is happening behind the scenes as negotiations occur, tradeoffs are made, and agreements are reached, you can rest assured that NAIFA is there to provide a voice for the industry and to look out for your interests and those of consumers who need the products and services you provide.
 
When it comes to tax reform, we are in our element. Between NAIFA’s professional staff, determined leadership team, participation in industry coalitions, and politically knowledgeable and active membership, we have a unique combination of expertise and clout to make a real difference in the ongoing debate (see our latest side-by-side comparisons (PDF) of the House and Senate bills). NAIFA has had an impact on every national tax-reform initiative, back to and including the first permanent income tax law in 1913. And you can be certain we are having an impact on this one.
 
We’ve already seen some results. So-called “Rothification” of retirement plans received much attention during the initial crafting of legislative language on the bill. NAIFA leaders, staff, and key contacts made it clear to Congress, the administration, and the media that protecting the ability of advisors and their clients to choose pre-tax retirement plan options ranks among our top priorities.
 
They heard us! Neither the House nor the Senate version of the bill includes a Rothification provision.
 
Original House and Senate drafts contained worrisome provisions. NAIFA and industry leaders raised concerns that enhancements to pass-through entities wouldn’t apply to many NAIFA members, restrictions on non-qualified deferred compensation arrangements, and limitations on catch-up contributions for some retirement savers would harm our industry.
 
Again they heard us and changes to these proposals are found in the modified chairman’s mark for the Tax Cuts and Jobs Act.
 
But we are not going to win the battle just to lose the war. The situation is fluid, and negotiations are ongoing. So we remain focused on educating key members of Congress to ensure that the final tax law is as strong as it possibly can be.
 
If it’s done right, tax reform has the potential to benefit advisors, the industry, and consumers. NAIFA will work painstakingly during this crucial time to shield you and your clients from harmful proposals and promote incentives to encourage those saving for retirement and promoting financial security.
 
Thank you for your involvement in NAIFA! It’s what gives us strength, credibility, and influence with lawmakers, and that makes all the difference.


Best regards,


Kevin Mayeux
NAIFA CEO

* If you're not a member, it's a reason you should join!
 


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