Even if the Trump tax plan causes more households to claim the increased standard deduction and to forego itemizing their tax deductions, since IRA and 401(k) plan pre-tax contributions are above-the-line deductions, they will still be available
NEW YORK December 27, 2017
IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC and Solo 401(k) plan solutions, announces that under the Trump Tax Plan, retirement accounts were the big winner according to Adam Bergman, a partner with the IRA Financial Group.
According to Mr. Adam Bergman, “The Trump tax plan nearly doubles the standard deduction for most households to $12,000 for individuals and $24,000 for married couples. In addition, the tax plan eliminated state and local income tax deductions, as well as repealed the personal exemption. Accordingly, the increase in the standard deduction under the plan coupled with the elimination of the state and local tax deduction could provide many households with less incentive to itemize their income tax deductions, making the tax deductions such as the mortgage income tax deduction and charitable contribution tax deduction less attractive. Whereas, in the case of the reporting of pre-tax IRA or employer qualified retirement plan contributions, such as a 401(k) plan on the 1040 Income Tax Return, the IRS categorizes these deductions as above-the line deductions, meaning one can take the IRA or 401(K) plan deductions regardless of whether one itemizes or claims a standard deduction. In other words, even if the Trump tax plan causes more households to claim the increased standard deduction and to forego itemizing their tax deductions, since IRA and 401(k) plan pre-tax contributions are above-the-line deductions, the ability to benefit from the pre-tax income deductions associated with making IRA or 401(K) contributions will not be impacted by the Trump tax plan. In fact, making a pre-tax IRA or pre-tax 401(k) plan contribution could become even more beneficial to many income taxpayers under the Trump tax plan.”
Adam Bergman is a partner with the IRA Financial Group, LLC, the markets leading provider of Self-Directed IRA LLC and Solo 401(k) Plans. Mr. Bergman is also the President of IRA Financial Trust Company, a Self-Directed IRA custodian. In addition, Mr. Bergman is a recognized expert on IRAs and 401(k) Plans and is the founder of the BergmanIRAReport.com and the Bergman401KReport.com. Mr. Bergman is the author of the books titled “Going Solo: America’s Best Kept Retirement Secret For the Self-Employed,” “The Checkbook IRA: Why You Want It, Why You Need It,” “Turning Retirement Funds Into Start-Up Dreams,” and “In God We Trust – In Roth We Prosper” available on Amazon, and is a frequent contributor to Forbes. Mr. Bergman has advised over 12,000 clients on the Self-Directed IRA LLC and Solo 401(k) Plan solutions.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market's leading provider of self-directed IRA LLC and Solo 401(k) plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646. To learn more about establishing a self-directed IRA account with the IRA Financial Trust Company please visit http://www.irafinancialtrust.com or call 800-472-1043.
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