Tax Reform 2.0: House Approves Two Additional Bills

The U.S. House approved two out of the three portions of the Tax Reform 2.0 legislation. On September 27th, lawmakers voted to approve the Family Savings Act and the American Innovation Act. The Family Savings Act would make it easier for employers to include annuities in workplace retirement plans. This would create a Universal Savings Account for family savings, expand section 529 education savings accounts to pay for apprenticeship fees to learn a trade, cover the cost of home schooling, and help pay off student debt. The bill would eliminate the 70-1/2 age restriction for contributing to individual retirement accounts. It would also allow families to access their own retirement accounts penalty-free for expenses when welcoming a new child into the family by birth or adoption. “The Family Savings Act passed by the U.S. House of Representatives is an important first step toward enhancing America’s retirement system,” said American Council of Life Insurers President and CEO Susan Neely in a statement. “This bill comes at a critical time. Every day, 10,000 Americans reach age 65. And, many people can expect to live 20 years, 30 years or longer in retirement. The Family Savings Act will go a long way toward helping Americans save for retirement and ensure their savings last a lifetime.”

The House of Representatives also approved the American Innovation Act. Starting a business can be exciting, ambitious and very expensive. This portion of the reform helps entrepreneurs make their dream a reality without a fear of startup expense complications by allowing them to write off more of their initial costs. The American Innovation Act would quadruple the amount of startup costs small business owners can deduct from their federal income taxes, raising it from $5,000 to $20,000. The bill includes a provision that allows startup businesses to carry forward their net operating losses and research and development tax credits accrued in the company’s first three years without regard to Section 382 of the tax code, which currently can lead to a tax penalty for startups.

If you have any questions regarding the tax reform, make sure to contact your local KerberRose office https://kerberrose.com

KerberRose is a Wisconsin certified public accounting firm located in Northeast and North Central Wisconsin. KerberRose was previously listed on Inside Public Accountings Top 300 Firms in 2016,  2017, & 2018. With over 160 professional staff members and offices in Shawano, Green Bay, Fox Cities, Clintonville, Sister Bay, Rhinelander, Oshkosh, Stevens Point, Antigo and Wausau, KerberRose combines the expertise of a leading regional firm with the convenience, familiarity and passion of a local provider.

Andrew Mathes

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Andrew Mathes

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