We don’t know the details on this proposal but from what I understand, the basic idea is to limit future contributions once the total accumulations in an individual’s plans, IRAs, etc. exceeds the amount needed to generate an annual income of $205,000 per year at age 62. That’s equivalent to about $3,400,000. I’m not positive, […]
Update
After the election…
Predictions about changes in taxes are coming out now; here are my thoughts and reactions to some articles I’ve read: “Tax expenditures” for retirement plans are huge; the second-largest after the employer deduction for health insurance. But I wouldn’t look for a major overhaul in the system; maybe a reduction in limits as part of […]
Fully insured pension plans – right for you?
We see sales pitches for fully insured pension plans (aka 412(e)(3) plans – named after the Code Section, and formerly known as and still often referred to as 412(i) plans) quite often. They generally have much higher deductible contributions than more common plan designs, so they seem very attractive for anyone looking to maximize tax […]
Individual Brokerage Accounts in plans? DOL backtracks and says “OK”
Apparently bowing to political pressure, the DOL changed its mind and gave a tepid “oh all right” to plans that allow individual brokerage accounts with effectively unlimited choices. (See last post for background on what that means and how and why they originally put the damper on them.) On July 30, they replaced the offending […]