Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the Treasury Department released proposed regulations that would clarify several aspects of Section 530A “Trump Accounts”. The proposed rules would make the allowed $2,500 employer contribution excluded from income to apply on a per employee basis and across all employers (so that an employee could only exclude a total of $2,500 from income no matter how many children or jobs they have), though the proposal does offer some additional flexibility by giving employers the option of allowing employees to make pre-tax salary reduction contributions (up to $2,500 per year) through a section 125 cafeteria plan to a dependent’s Trump Account. In addition, the proposal says that sole proprietors, partners, and 2%+ S-corp shareholders would not be able to make income-excludable employer contributions to their own or their dependents’ Trump Accounts (which is likely to disappoint business owners who hoped to gain the tax benefits of doing so).
Also in industry news this week:
- The Treasury Department said this week that it is issuing a final rule that permanently removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information to FinCEN under the Corporate Transparency Act
- Advisors and their clients alike appear to be more optimistic than they were earlier in the year, according to a recent survey, with a strong majority of advisors also reporting growth in the size of their client bases
