House Ways and Means Committee Chairman Kevin Brady, R-Texas, released Monday a revised version of his sweeping tax and retirement bill.
The retooled version includes a new retirement-related provision expanding the use of 529 savings accounts to cover homeschooling costs as well as allowing an unborn child to be designated as a beneficiary.
The revised bill also provides “Obamacare tax relief,” Brady said, by delaying the Medical Device Tax for five years, the Health Insurance Tax for two years, the Cadillac Tax for one year and permanently repealing the Tanning Tax.
“Today’s action reinforces the notion that retirement legislation remains a key congressional goal to accomplish before the current session adjourns for the year,” said the Insured Retirement Institute, in a statement.
The revised version of the Retirement, Savings, and Other Tax Relief Act of 2018 and the Taxpayer First Act of 2018 contains all the provisions from the Senate-passed Retirement Enhancement and Savings Act (RESA) that had been included in the original bill, released on Nov. 26.
IRI spokesman Dan Zielinski told ThinkAdvisor on Monday that the new 529 plan provision appears to be the only “significant” change. “This doesn’t mean this is the end vehicle,” Zielinski added. “Clearly the issue as a whole is in serious discussion.”
The 529 plan provision included in Monday’s revised bill had originally been included in the House-passed Family Savings Act but was stripped out of the version of the bill Brady introduced on Nov. 26.
The bill also provides temporary tax relief for victims of the wildfires in California and for communities impacted by hurricanes Florence and Michael and by storms and volcanoes in the Pacific.
Rep. Brady said in releasing the retooled tax relief package that “it’s irresponsible to wait until next year to deliver crucial tax relief for families in 14 states and territories struggling to recover from devastating wildfires, hurricanes, flooding and other storms. Both parties need to come together to help these communities now.”
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