401(k) Chances for Pre-Election Tax Reform / 401(K) Changes Looking Dimmer
We have been reporting during the past couple of weeks about possible changes to 401(k) retirement plans as part of sweeping tax reform legislation that might make it into law prior to this year’s mid-term elections. See our blogs entitled Winds of Change Are Blowin’ Around Washington: What’s Happening With 401(k) Plans? and More Proposed 401(k) Plan Changes In The Works – Keep Your Antennas On!.
At least the non-RESA changes that have been proposed as part of tax-reform are not looking vigorous, being that “Tax Reform 201” itself is most likely in big trouble. Politico reports that, although the Senate does at least hope to pass certain defense, government spending, and farm legislation before the election, aides to Senate Majority Leader Mitch McConnell insist that he has no plans to put together another tax cut package between now and the election, “figuring there’s no use since it would never become law” – an assessment that, to our ears, strikes as understatement at best.
Meanwhile, we have heard nothing new this week from the House on tax reform. On another front, there is still anxiety among Republican ranks over the President’s recent threats to shut down the Government before the election over immigration reform. All of this means that there is still a great deal of uncertainty as to what, if anything, might actually make it into law between now and the midterms. We will be keeping our eyes and ears open, but – at this point – we would frankly be very much surprised if anything were to happen on the 401(k) front yet this term.