Allan Sloan: Some good news on the Republican tax plan
There are times when no news is good news. That's the case when it comes to retirement savings and the tax cut bill that
Earlier, it looked as if
You pay tax on money that you take out of 401(k)s and such, and your heirs have to make taxable withdrawals if they inherit your plans. By contrast, withdrawals from Roths are tax-free, and you can bequeath them to your heirs, who can either withdraw money from them tax-free or hand them down to their heirs.
Reducing 401(k) deductions would have been a particularly heartless accounting gimmick, making retirement saving more expensive for tens of millions of working people by reducing their tax deductions to help cover the cost of eliminating the estate tax (no, it's not a "death tax") that 99.8 percent of estates escape and only about 5,400 a year pay.
Shrinking 401(k) deductions would also have helped cover the cost of the massive corporate tax cut that the Trump administration claims would be a huge help to average families but that in reality would disproportionately benefit families that own lots of stock, which by definition aren't average families.
But at least for now,
So there you have it. Retirement plans seem safe, at least for now. But I still think this tax cut bill is really bad, hurting the part of the country in which I live and boosting future burdens on my children and grandchildren by adding trillions of dollars to the national debt.
I also suspect that this bill would benefit
But because we don't have access to his tax returns, we can only guess.
The bottom line, as I noted a few days ago: If this legislation is well on its way to being passed by
Credit:
Humana Signs Definitive Agreement to Sell Closed Block of Commercial Long-Term Care Insurance Business
To fight opioid crisis, Florida’s largest insurer stops covering OxyContin
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News