Tax Law Led to Increase in Pension-Plan Contributions in 2017

Companies substantially increased their contributions to defined-benefit pension plans in 2017, likely because of the new tax law that President Trump signed in December, according to a new paper from researchers at the University of Wisconsin-Madison.

The tax law cuts the corporate tax rate from 35 to 21 percent, starting in 2018. The rate reduction provided an incentive for corporations to boost their deductions in 2017 — including the deduction for pension contributions — so that they can take those deductions at the higher rate.

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David Wingate is an elder law attorney at the Elder Law Office of David Wingate, LLC. The elder law office services clients with powers of attorneys, living wills, Wills, Trusts, Medicaid and asset protection. The Elder Law office has locations in Frederick and Montgomery Counties, Maryland.