Will Current Tax Reform Impact My Business?

Tax reform is dominating the 401(k) headlines and more importantly it is weighing on the minds of business owners. As the owner of a Third Party Administration firm I have been contemplating how tax reform could impact my business and what strategic choices might benefit my company most. We have finally got to lay eyes on the Senate Tax Reform Proposal and it looks like we can take a deep sigh of relief in that lower limits and Rothification look to not be taking over the 401(k) world quite yet. However, not all is safe as there are a few negative provisions around prohibiting catch-up contributions for people making over 500k and some tweaks to 403b and 457b plans that cannot be ignored.

I think now is the time to start tax reform conversations with your clients and prospects. Why do I say this? Well, I am not just a retirement plan professional, I am also a Business Owner/Employer/Plan Sponsor….and I have found myself extremely interested in all areas of the tax reform proposal, not just the retirement plan area but also the income tax, corporate tax and home ownership deduction changes. People running companies have to always be navigating the rough oceans of business. We are in charge of avoiding the icebergs and hopefully making solid decisions that benefit our employees and the company as a whole. We lie awake at night thinking of business and the future….well when we are not dreaming of surfing perfect waves….or maybe that’s just me? My point is that these Business Owners are yearning for some support and help right now. They would love to hear from a professional that has spent time thinking about these changes and how they might impact companies of various sizes.

The industry is always looking for “door openers” and “buzz words” .…I know, I know, I can’t stand salesy type lingo either…. I teach our Plan Consultants to help people, not to sell them. Anyways, based on my own concerns and recent headspace as a business owner I would say that offering help/clarity around Tax Reform would be a great way for Plan Advisors to kick open some doors and pounce on this opportunity.

I talk about not being salesy and how I don’t like salesmanship and then I go and use a sentence like “kick open some doors and pounce” I guess I am a bit of a walking contradiction at times. I will have to sort that out.

Below is a link where you can review Senate Tax Reform Proposal. Study up and go sell some plans….Ooops I mean help some people.

https://www.finance.senate.gov/imo/media/doc/11.9.17%20Chairman’s%20Mark.pdf