As employment pension plans are being replaced by 401(k)s, we need to be mindful of any potential changes to tax treatment of these widely used retirement vehicles. An interesting article was recently published from Kelly Greene which cautions us that the tax treatments of these plans could be altered by a government which is in desperate need of raising revenue. Here are the 5 questions that are brought up and answered in this article.
1. Why are retirement accounts being scrutinized now?
2. Why would Congress tinker with the retirement plans they already have set up?
3. What proposals to increase tax revenue, or boost retirement savings, are on the table?
4. If Congress alters tax deferrals, will people still put money away?
5. How much do these plans cost the government in lost revenue?