Congress Passes Major Tax Overhaul, Little Effect on Retirement Savings Policy

On December 19, 2017, the House and then the Senate approved HR 1, the “Tax Cuts and Jobs Act,” which was signed into law on December 22, 2017. The major tax overhaul includes a reduction in tax rates for most individuals, a reduction in the top corporate tax rate from 35% to 21%, and a reduction in the tax rate on individual business income. Generally, HR 1 leaves retirement savings tax incentives untouched, and that is (for the most part) good news. In this article, we consider some key elements of the bill bearing on retirement savings tax policy.