In this month's Washington Update video, NAPA's CEO/Executive Director Brian Graff slams two provisions in President Obama’s FY 2014 budget, which was submitted to Congress April 10. The first of these two “retirement plan clunkers” in the budget, Graff notes, would result in double taxation of 401(k) plan contributions made by small business owners making more than $250,000 a year — that is, they would have to pay tax on the contributions in the year in which they are made, and then again (and at the full tax rate) when they’re distributed at retirement. (The same provision was in last year’s budget as well.)
The second “clunker” is the new $3 million lifetime aggregate cap on DC plans and IRAs that was leaked last week. The cap “is unfair to small business owners who played by the rules,” Graff declares. “It’s bad policy for everyone — and ultimately it’s the workers who bear the brunt of it.”
Graff's April Washington Update is posted on the right side of this page.
