The tax incentives for saving in qualified retirementaccounts are reportedly under threat as the Trumpadministration and Congressional Republicans look to move onlongstanding promises to reform and simplify the tax code.
Early indications are that lawmakers are tinkering withproposals that favor the Roth, or after-tax contribution structureof savings vehicles.
Another idea that emerged from House Republicans’ blueprint fortax reform was Universal Savings Accounts, which would incentivizeincreased savings rates by not taxing investment growth ondeferrals made on an after-tax basis. The accounts would bepatterned on Roth IRAs, with one major distinction: withdrawalscould be made at any time before retirement without a taxpenalty.
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