{"id":22776,"date":"2024-11-15T21:13:18","date_gmt":"2024-11-15T21:13:18","guid":{"rendered":"http:\/\/www.thinkadvisor.com\/2024\/11\/15\/on-taxes-and-retirement-heres-what-could-change-in-2025\/"},"modified":"2024-11-15T21:13:18","modified_gmt":"2024-11-15T21:13:18","slug":"on-taxes-and-retirement-heres-what-could-change-in-2025","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/11\/15\/on-taxes-and-retirement-heres-what-could-change-in-2025\/","title":{"rendered":"On Taxes and Retirement, Here’s What Could Change in 2025"},"content":{"rendered":"
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That said, \u201cthe moment tax reform is on the table, everything is on the table. In order to pass the reconciliation bill, they must generate sufficient revenues to meet the agreed upon net number. This is where surprises can appear,\u201d Bush pointed out.<\/p>\n

Retirement Policy<\/h2>\n

While Secure 2.0 regulatory guidance is anticipated next year, the Labor Department\u2019s fiduciary and ESG rules put forth under the Biden administration \u201care natural focal points for the incoming administration and Congress,\u201d said Mark Iwry, the former head of national retirement policy during the Obama-Biden administration, who’s now a nonresident senior fellow at the Brookings Institution in Washington.<\/p>\n<\/div>\n

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Groom Law Group attorneys noted on a recent webcast that among the Secure 2.0 changes anticipated next year are projects such as the retirement \u201clost and found\u201d registry, savers match and portability studies.<\/p>\n<\/div>\n

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Catch-up contribution changes and part-time employee rules are also expected in early 2025, the lawyers said.<\/p>\n<\/div>\n

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Iwry noted that two major factors should \u201climit the impact\u201d of the presidential transition on Secure 2.0.<\/p>\n<\/div>\n

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First, the law \u201cwas famously bipartisan, largely because much of it was proposed by and for industry stakeholders,\u201d Iwry said.<\/p>\n<\/div>\n

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Second, \u201cplan sponsors and their advisors, recordkeepers and other service providers need predictability, stability, and ready ways to minimize compliance risk. That generally translates to a desire for timely and practical regulatory guidance on key issues, such as questions of interpretation under 2.0,\u201d Iwry relayed.
 
\u201cAt the same time, when the election changes the party controlling the White House, the new administration\u2019s OMB does not wait much past noon on Inauguration Day to issue its temporary freeze of regulatory actions that are in the pipeline,\u201d Iwry continued.<\/p>\n<\/div>\n

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The freeze \u201ccan be accompanied by a clawback warning that the incoming administration will not necessarily stand by prior management\u2019s administrative positions, especially in recently issued guidance. Some incoming administrations have also targeted recent final guidance for administrative revocation or amendment, in addition to the threat of retroactive invalidation under the Congressional Review Act,\u201d Iwry added.<\/p>\n<\/div>\n

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“For example, Secure 2.0 requires most new and recently adopted 401(k) plans to use auto enrollment and auto contribution increases starting in 2025,” Iwry said. “Treasury and IRS guidance answering a few interpretive questions about this is pending.”<\/p>\n<\/div>\n

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Also, “Rothification of catch-up contributions for participants above the specified wage level will be required right after the end of 2025 per that two-year deferral of effective date,” Iwry said. “Guidance on some outstanding questions is in the works but not issued yet.” <\/p>\n<\/div>\n

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Secure 2.0 was enacted Dec. 29, 2022, with a Jan. 1, 2024 effective date for requiring catch-up contributions to be made in Roth form only. <\/p>\n<\/div>\n

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Secure 2.0 gave the industry one year “to prepare to implement that change,” Iwry said. <\/p>\n<\/div>\n

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“In mid-2023, Treasury yielded to industry\u2019s pleas for more time to adjust systems to implement this change, and deferred the deadline for implementing the change by two years \u2014 until the start of 2026,” Iwry said. <\/p>\n<\/div>\n

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Treasury “also promised guidance along the way that would answer a number of questions about how to implement. That guidance is still pending. It is uncertain how soon it will be issued,” that is, it might be issued before year-end, or before Jan. 20, 2025, Iwry relayed. <\/p>\n

What Next at the SEC<\/h2>\n

Securities and Exchange Commission Chairman Gary Gensler may make a quick exit, before inauguration day, according to attorneys at Arnold & Porter.<\/p>\n<\/div>\n

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Gensler\u2019s term expires in 2026, but \u201cit is not likely he will continue beyond inauguration day in January 2025 \u2014 whether he follows in the footsteps of his predecessor, Jay Clayton, and departs as early as December 2024, or stays until closer to the inauguration like other past chairs is an open question,\u201d the attorneys said in a recent brief.<\/p>\n<\/div>\n

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Even with Republican control of both the White House and Senate, \u201cit may take several months into the new Trump administration before a new SEC chair is nominated and confirmed,\u201d the attorneys write.<\/p>\n<\/div>\n

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During that time, President-elect Trump \u201cpresumably will designate an acting chair from the two current Republican commissioners, Hester Peirce or Mark Uyeda, with Peirce seeming more likely given her seniority.\u201d<\/p>\n<\/div>\n

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Peirceand Uyeda, as well as former SEC Commissioner Dan Gallagher, have been among the names floated as possible replacements for Gensler.<\/p>\n

DOGE<\/h2>\n

Meanwhile, Trump\u2019s planned Department of Government Efficiency (DOGE), to be headed by Elon Musk, will serve “as an advisory body to the Trump administration, rather than a newly established federal agency,\u201d according to analysts at Raymond James.<\/p>\n<\/div>\n

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\u201cThis distinction is important as advisory bodies cannot make or enforce regulations, can only provide recommendations from outside of government, and do not have either government funding or staff,\u201d the Raymond James analysts said.<\/p>\n<\/div>\n

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\u201cWhile DOGE can make recommendations to the White House on potential areas for cost-cutting, its influence will depend on the Trump administration\u2019s, and in many cases Congress\u2019, willingness to act,\u201d the analysts said.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

That said, \u201cthe moment tax reform is on the table, everything is on the table. In order to pass the reconciliation bill, they must generate sufficient revenues to meet the agreed upon net number. This...<\/p>\n","protected":false},"author":1,"featured_media":22777,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/11\/on-taxes-and-retirement-heres-what-could-change-in-2025.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22776"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=22776"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/22777"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=22776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=22776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=22776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}