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.”

Add Your Comments

3 Comments

  1. Lee Applebaum
    Posted June 29, 2018 at 11:45 am | Permalink

    Here’s an idea. If they continue with Rothification, for the added tax the owners will pay for the after-tax Roth portion, do away with testing, so its easier for owners to max out regardless of what the NHCE do.

    Negotiations are give and take.

  2. url url'>Ron Church
    Posted June 29, 2018 at 12:12 pm | Permalink

    That sounds like a good idea Lee. Perhaps we can learn something from Trump about negotiating.

    I’m also elated to see that chairman Brady is retirement friendly and wants to help american families save for retirement.

  3. url url'>Jim Phillips
    Posted July 2, 2018 at 4:34 pm | Permalink

    This is testimony to the credibility of NAPA.net, as the go-to source for news and information pertaining to the American retirement system.

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