Congress passed the Tax Cuts and Jobs Act last fall, but it’s already at work on a sequel. Congressional leaders say early decisions have been made on the legislation they plan to pass this fall.
The “Rothification” of retirement plans isn’t going to happen this year, they say. Rothification is when the up-front tax benefits of traditional IRAs and 401(k)s are taken away. The provision was seriously considered for last year’s law, but didn’t make it into the final version. Because it is controversial, and financial services firms lobby heavily against it, the provision won’t be in the next tax law either.
But there will be provisions to beef up health savings accounts. It looks like a majority in Congress want to make the accounts available to more people and increase the amount that can be put in them.
The articles I’ve located with these points are behind paywalls, but here’s an excerpt:
The committee will mark up several individual bills related to expanding health savings accounts, the aide said. Ways and Means Committee Chair Kevin Brady, R-Texas, said earlier this month that the committee would develop a healthcare-related tax package and mark it up before the August recess.