T20-0138 - Eliminate Deductions for New Contributions to Retirement Saving Plans, Baseline: Current Law with TCJA Permanently Extended, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2020
The proposal would repeal tax deductions for new contributions to retirement saving plans. These contributions remain eligible for the savers’ credit. Tax burden changes include the resulting change in current tax liabilities and the change in the net present value of future tax liabilities from withdrawals of accumulated assets from these contributions in retirement. Baseline is the law in place as of December 18, 2019, with the Tax Cuts and Jobs Act of 2017 (TCJA) permanently extended.