Did You Know tax law changes could impact retirement plans?
While there may not be direct impact from the tax law changes in effect for 2018, there is some indirect effects on retirement savings. The biggest impact is the extra deduction for certain sole proprietors, S-Corp owners, and partners in an LLC. A portion of their income they would not receive as wages will now receive a special tax deduction. However, if they contribute to a retirement plan, it would reduce their income and reduce the amount of that deduction or even eliminate it. Unfortunately, some of these business owners will be faced with a large tax deferral offset by a smaller paid tax. If you want to know more about how this could affect you, contact us!