Retirement Plan Proposals 6-2013 newsletter
In the June newsletter, ES discussion of pres’s proposal #4 to limit deduction of contributions to 28%: do we know if the taxpayer in bracket > 28% would get basis for the taxes paid? Seems I read that somewhere. If so, any idea how it would work? Would the taxes paid then grow tax-free?
TIA,
Johanna
Permalink Submitted by Alan - IRA critic on Sat, 2013-05-18 23:09
It’s not possible to predict future tax legislation since most proposals are not enacted. And even if the tax benefit was limited to 28%, the basis question could go either way, but most likely it would not be allowed since the plan could not keep track of the taxpayer’s tax rate and the plan administrators would not want to “collect” this information from taxpayers and then track it in the plan.