More Public Policy Topics
Policy, legislative, and regulatory topics are frequently changing or being introduced. Visit this page often to access the latest information about other topics and how they may impact Plan Sponsors and participants.
Tax reform proposals continue to surface as a way to reduce the deficit and pay for other legislation. Past proposals have included capping retirement contributions across accounts, freezing contribution limits, and lowering contribution limits. It will be important to encourage leadership not to pursue tax reform to the detriment of retirement accounts.
Tax reform proposals to limit contributions or accumulation in retirement plans creates concerns for plan sponsors about managing grandfathered limits (if applicable), while managing revised or aggregated limits. This may result in plan administration being more burdensome and costly to manage. Participants might have fewer options for contributing in a tax-deferred environment with the potential increase in non-elective or matching contributions in Roth accounts.
Bank of America Merrill Lynch and its associates does not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. Please consult your own independent advisor as to any tax, accounting or legal statements made herein.
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