Opponents of shifting to Roth plans speak up in Senate

Ohio Sen. Sherrod Brown says 'Rothification' would make saving for retirement more expensive.
SEP 15, 2017

Sen. Sherrod Brown, D-Ohio, promised "one hell of a fight" if tax reform negotiators consider shifting retirement savings tax incentives to Roth accounts instead of 401(k) plans, as a way to pay for corporate tax cuts. Speaking at a Senate Finance Committee hearing Thursday, Mr. Brown said the move toward "Rothification" would make saving for retirement more expensive for employees and employers, especially small businesses. "You've got to be kidding me. Their two best ideas to pay for massive tax cuts for Wall Street are to cut Medicare and raise the retirement age for Social Security to 70, and then steal from the retirement accounts of working, middle-class Americans?" Mr. Brown said at the hearing. He also organized a letter to Treasury Secretary Steve Mnuchin, White House Chief Economic Adviser Gary Cohn, and House and Senate leaders to demand tax reform not include new taxes on retirement savings. At the same hearing, Sen. Tom Carper, D-Del., noted the last major tax reform in 1986 took five years. "The idea that we could accomplish tax reform in a few months is the triumph of man's hope over experience." Committee Chairman Orrin Hatch, R-Utah, said: "My preference is to move tax reform through this committee with bipartisan support. I have no desire to exclude my Democratic colleagues from this discussion." Hazel Bradford is a reporter for InvestmentNews' sister publication Pensions&Investments.

Latest News

WallStreetBets takes on the SEC — and makes a surprisingly sharp case
WallStreetBets takes on the SEC — and makes a surprisingly sharp case

The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline