Archive for Dennis

Retirement Savings Incentives Listed Among Possible Tax Reform Options

Originally posted on CUInsight.com.

Guest post written by Dennis Zuehlke, Compliance Manager, Ascensus.

Ascensus is the NAFCU Services Preferred Partner for IRA, Retirement Plan, and Health Savings Account (HSA) Solutions Software, Training, Documents and Consulting.

The Senate Finance Committee has released its Economic Security tax reform option paper  containing a laundry list of retirement savings incentives among the possible tax reform options. The non-exhaustive list is just the latest indication that retirement savings incentives will be scrutinized as part of efforts to reform the tax code, in part because their cost to the Treasury is second only to the cost of the exclusion of employer contributions for healthcare.

Earlier this year, Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Orin Hatch (R-UT) laid out a series of discussion topics to set the stage for comprehensive tax reform. Over the past several months, the Finance Committee has been meeting weekly to discuss the tax reform option papers drafted by the majority and minority committee staffs to determine which options they may want to consider as part of comprehensive tax reform.

The option papers have covered a wide array of issues from across the tax code, including simplifying the tax system for families and businesses; business investment and innovation; infrastructure, energy, and natural resources; international competitiveness; and economic and community development. The Economic Security paper is the seventh in a series of papers and focuses on health, retirement, life insurance, fringe benefits, and executive compensation.

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Proposed IRA Changes Focus on Small Business and Middle Class Taxpayers

Originally posted on CUInsight.com.

Guest post written by Dennis Zuehlke, Compliance Manager, Ascensus.

Ascensus is the NAFCU Services Preferred Partner for IRA, Retirement Plan, and Health Savings Account (HSA) Solutions Software, Training, Documents and Consulting.

In the weeks since the Obama Administration released its 2014 Fiscal Year Budget Proposal, much attention has been paid to the proposed cap of $3 million on IRAs and employer plans, and the reduced tax incentives for higher-income taxpayers in order to raise $9 billion of additional revenue over the next 10 years.

These proposals, if enacted, could have a dramatic impact on IRAs and employer plans, similar to the downturn in IRA activity that resulted from the Tax Reform Act of 1986, which placed limits on IRA deductibility for certain individuals covered by employer plans. Almost unnoticed in the Obama budget proposal are a number of other provisions that are targeted to small business and middle class taxpayers that would have a more immediate impact on credit union IRA programs.

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Obama Budget Proposes Cap on Retirement Plan Balances

Originally posted on CUInsight.com.

Guest post written by Dennis Zuehlke, Compliance Manager, Ascensus.

Ascensus is the NAFCU Services Preferred Partner for IRA, Retirement Plan, and Health Savings Account (HSA) Solutions Software, Training, Documents and Consulting.

The Obama Administration has proposed a cap of $3 million on IRAs and retirement savings plans in order to raise $9 billion of additional revenue over the next 10 years. This is the first time that the Obama Administration has proposed a cap on the total amount of assets that can be accumulated in IRAs and retirement savings plans held by individuals. It comes on the heels of the Administration’s proposals in last year’s budget to reduce the tax incentives for making retirement plan and IRA contributions.

The Administration released details of the proposal in the Fiscal Year 2014 Revenue Proposals. Under this new proposal, contributions to tax-advantaged retirement savings plans (such as IRAs, 401(a) plans, 403(b) plans, and funded section 457(b) governmental plans) would be prohibited for individuals who have accumulated assets past a certain threshold. That threshold is the amount necessary to provide the maximum annuity permitted for a tax-qualified defined benefit plan (currently $205,000), which, for an individual age 62 in 2013, would be approximately $3.4 million.

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