Tax Reform Plan Comes Under Fire for Retirement Savings Impact

110505_dave_camp_ap_328A coalition of groups has drafted a letter to Chairman of the House Ways and Means Committee Dave Camp, opposing his recently released comprehensive tax reform package on the grounds that it would negatively impact the nation’s retirement savings.

The letter claims that the proposed new tax on banks and other large financial institutions would reduce flexibility and availability of retirement funds, while over provisions introduce new complexities into the system that would be a disincentive for savings, including a new penalty on retirement plan withdrawals before age 59 and a half.

Camp’s proposal is only a draft, not a fully formed bill, and there is wide skepticism that it will ever reach a vote, at least not in its current form.

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