The Financial Planning Association was also lobbying against the defined contribution plan changes, which had been sponsored as amendments by Sen Orrin Hatch (R-Utah) and would have eliminated pre-tax contributions for savers age 50 and older at the $500,000 level. “These critical retirement plans make it possible for millions of Americans to save for their eventual transition out of the workforce and into retirement,” the FPA said in a statement. “Our members know how critical 401(k) plans are for real people and how instrumental they are to planning for retirement.”
The Senate Finance Committee will continue working on the legislation today, with an eye toward wrapping up its work by the end of the week.
“We plan to continue to lobby to reduce the qualified plan distribution rates for pass-throughs,” Adams says. “It’s a bit of moving target right now, so we are spending lots of time focusing on this.”
Sen Orrin Hatch (R-Utah), the Senate Finance Committee chairman, had proposed the Rothification of qualified plan catchup provisions for high-income individuals on Sunday in an effort to find revenue to offset the costs of the tax reform measure—a tall task that continues today.