InvestmentNews: Retirement bill would allow tax-free financial planning

Recently introduced legislation includes tax incentives for financial planning related to retirement.

The provision, contained in section 113 of the Retirement Security and Savings Act, would permit employees to use pre-tax dollars through employer-based retirement programs to pay for investment advice regarding qualified plans. It also would allow retirement advice for investments held outside such arrangements.

The feature is one of more than four dozen in a bill written by Sens. Robert Portman, R-Ohio, and Ben Cardin, D-Md., that was released earlier this month. The legislation is designed to help people save more for retirement and expand the number of businesses that sponsor plans.

The fact that the lawmakers promote financial planning around retirement drew praise from Chris Iacovella, chief executive of the American Securities Association, which represents regional financial services firms. The group highlights such policy in its own retirement security agenda.

“It’s really good Congress is recognizing how important a sound financial plan is in times of volatility and uncertainty,” he said.

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