Your Custom Text Here
LPL Financial published their midyear 2018 Outlook. This contains digestible information regarding the markets and more.
The PDF below contains the full update. You can enlarge the view to 'full screen' by clicking the square image that appears in the bottom right of the pane. You can also navigate left and right & zoom in and out as you move through the information.
If you'd like the PDF for yourself, your plan participants, or someone else, please reach out and we will send it your way.
Image Source: https://www.tripsavvy.com/hidden-gems-in-dc-1040410
On December 22, 2017, House Resolution 1 (H.R. 1), titled “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” was signed into law by President Trump. This new law amends the Internal Revenue Code (IRC) to reduce tax rates and modify policies, credits, and deductions for individuals and businesses.
Retirement-related provisions included in the Act apply to taxable years beginning after December 31, 2017, unless otherwise noted.
1. Repeal of special rule permitting recharacterization of Roth conversions
Effective for taxable years beginning after December 31, 2017, recharacterization of a qualified rollover contribution from a non-Roth account to a Roth IRA is no longer permitted. Conversions from a traditional IRA to a Roth IRA are still permitted, but they may no longer be recharacterized at a later date following the conversion.
2. Extended rollover period for plan loan offset amounts
Retirement plan loans may be offset against a participant’s account for a variety of reasons, including when a participant terminates employment or the plan terminates. When the loan is offset, the participant is taxed on the amount of the outstanding loan balance, unless the participant rolls over the offset amount to an IRA or another qualified plan within 60 days. Under the Act, when the loan offset is caused by termination of employment or plan termination, the period to roll over a qualified plan loan offset amount is being extended from 60 days to the individual’s tax return filing due date (including extensions) for the taxable year in which the offset amount is treated as a distribution from a qualified plan.
Please Note: This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does your advisor assure that, by using the information provided, plan sponsors will be in compliance with ERISA regulations.
Phone: (952) 835-4485
Address: 7400 Metro Boulevard Suite #213 Edina, MN 55439
Email: Jessica.Ballin@LPL.com
Securities offered through LPL Financial, member FINRA / SIPC. Investment advisory services offered through Global Retirement Partners (GRP), a registered investment advisor and separate entity from LPL Financial. The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: AZ, CA, GA, IA, IL, IN, KY, MA, MN, NC, ND, NV, NY, OH, OR, PA, TX, WA, WI and WV.