Senate Finance Releases Option Paper on Retirement & Health Tax Expenditure Changes under Tax Reform

The Senate Finance Committee released its “options” paper on retirement and health policy changes and tax reform. This is option paper number 7 in a series that the Senate Finance Committee has released as a result of its meetings with members and staff on options to consider under tax reform by subject matter.

As in the other option papers released by the Senate Finance Committee, it did not endorse any individual proposal. In this report, staff noted that tax provisions related to employee benefits are often complex and under a cost-benefit analysis, sometimes produce limited benefits when compared to the cost outlay. This report provides a laundry list of possible changes to the tax code relating to retirement plans. In an effort similar to the Ways and Means working group on retirement and pensions, it provides a compilation of alternatives for changes in the tax treatment of retirement plan contributions and distributions.

The report is available here.

ERIC members and guests can read more here.