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NAPA Net Exclusive: Ways & Means Responds on Rothification Rumors

Rumors notwithstanding, the House Ways & Means Committee tells NAPA Net, the Committee has no plans to revisit Rothification as part of the new tax reform discussions.

In response to an earlier NAPA Net post regarding the potential for Rothification – limiting the amount of 401(k) contributions that could be made on a pre-tax basis ­ a spokesman for the Ways & Committee says that, “Chairman Brady continues to advocate for making our tax code more family-friendly including helping future generations save for retirement. The Ways & Means Committee has no plans to revisit the issue of so-called 'Rothification' as part of any 2.0 proposals and any rumors to the contrary are simply not correct.”

The June 28 post outlined a number of potential impacts on retirement plans and retirement plan incentives as part of a possible “Tax Reform 2.0,” including Rothification, which had been a topic of much concern during the buildup to the Tax Cuts and Jobs Act (TCJA).

Brian Graff, CEO of the American Retirement Association, said, “We very much appreciate Chairman Brady responding to our concerns so promptly and we look forward to working with him on proposals that will strengthen our nation’s retirement system.”