On December 22nd, President Trump signed into law the Tax Cuts and Jobs Act, which is being hailed as one of the biggest tax reform bills in recent history. There are many tax changes in the bill; however, retirement plans were not majorly affected.
What was not included in the law is the proposed “Rothification” of contributions, as well as the reduction of contribution limits. This means that current rules related to contribution limits stay intact and tax-deferred contributions are still allowed.
While major changes did not happen, there are still items that will affect retirement plans, as well as health and welfare plans. Over the next several weeks, Nyhart will be sending updates on how these changes may impact your plan.
If you have any questions regarding how the tax bill may affect your retirement plan, please contact your Nyhart consultant.