The head of the American Society of Pension Professionals & Actuaries says 401(k) plans and pension plans have escaped a tax hit from H.R. 4872.
The drafters of H.R. 4872 – the Reconciliation Act of 2010 that is supposed to revamp the just-passed H.R. 3590 health bill – have tried to raise revenue to pay for some Medicare program costs by proposing a new 3.8% tax on “unearned income” over $200,000 per year for individuals and $250,000 per year for couples.
The tax apparently would apply to annuities, but the bill exempts distributions from 401(k) plans, pension plans and other retirement plans, according to Brian Graff, the executive director of ASPPA, Arlington, Va.