Tax Changes for Retirement?

It’s now after the 2018 midterm elections and everyone knows the fallout, the democrats took control of the house and the republicans increased their strength in the senate. However these changes won’t take effect until January 2019, and congress is holding one more “lame duck” session in attempt to pass some legislation for members who will not be there the next term. So what has been proposed? One new piece of legislation in particular may catch the eyes of many taxpayers.

House Ways and Means Committee Chairman Kevin Brady (who will likely be replaced due to party control change) has proposed a new 300-page tax bill that he said will affect Americans’ retirement savings, numerous business tax breaks and redesign the IRS. Many people remember Kevin Brady as one of the key contributors toward the 2017 tax reform.

The new legislations outlook is not immediately clear because of the hurdles that are always present when passing new reform, and Congress may be too busy trying to find the money for President Trump’s demands for money for the proposed U.S.-Mexico Border wall. However, Brady remains hopeful, he has said that the tax bill would provide breaks for fuel cell cars, energy efficient homes, race horses, mine safety equipment, auto race tracks, and other items. The big piece is the change and breaks for retirement and savings plans.

With its future unknown, it will be best to stay up to date on all of the potential changes. As always if you have questions or need help, contact us at the Center for Financial, Legal & Tax, Inc.