The myriad of choices of retirement plans currently available to small business owners can be confusing. Now a top official for the American Institute of CPAs (AICPA) says that Congress should consolidate the rules.
In written testimony provided to the House Small Business Committee on Oct. 2, AICPA Tax Executive Committee chairman Jeffrey A. Porter offered suggestions for simplifying the options, including the following:
- A uniform employee contributory deferral type plan
- Elimination of nondiscrimination tests based on employee pre-tax and Roth deferrals for 401(k) plans
- Uniform rules for determining basis in distributions
- A uniform definition of terms defining owners.
- Elimination of the required minimum distribution (RMD) rules
- Uniform rules for early withdrawal penalties.
There seems to be some impetus for change. Stay tuned.