New Congress: Possible Tax Legislation Changes on the Horizon
What this could mean for Ohio's association community
The scales shifted during the 2022 mid-term election in Washington, D.C., with the Democrats no longer controlling both houses of Congress. While it's in question whether or not any tax-related legislation can muster the requisite bipartisan support, a review of certain provisions in existing laws might provide an indication of the many areas ripe for action in the next two years.
Retirement catch-ups at risk
The SECURE 2.0 Act, enacted at the tail end of 2022, reportedly includes a technical drafting error that jeopardizes the abilities of taxpayers to make catch-up contributions to their pre-tax or Roth retirement accounts. According to the American Association of Pension Professionals and Actuaries, under the existing statutory language, no participants will be able to make such contributions beginning in 2024.
The American Retirement Association (ARA) has brought the issue to the attention of the U.S. Department of Treasury and the Joint Committee on Taxation (JCT), a nonpartisan congressional committee that assists with federal tax legislation. While the JCT has apparently acknowledged that the language does appear to be a drafting error, a timely correction is far from guaranteed.
Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett (CSH).