Certified Financial Planner Board of Standards Inc.
09/17/2024 | Press release | Distributed by Public on 09/17/2024 15:59
CFP Board urges Congress to restore and expand tax incentives for financial advice
On September 16, 2024, CFP Board, the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), the Financial Services Institute (FSI) and the Investment Adviser Association (IAA) submitted a joint letter to the U.S. House Ways and Means Committee in response to its request for comment on the impact of expiring provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) on families, workers, businesses and communities.
Prior to the enactment of TCJA, individuals who received financial advice were able to take advantage of tax deductions if the fees for that advice exceeded 2% of their adjusted gross income. However, TCJA's repeal of this vital deduction effectively raised the cost of financial advice for everyday Americans who were able to benefit from the deduction.
The joint letter submitted to the Ways and Means Committee requests that Congress restore and expand tax incentives for financial advice, including financial planning. The letter also underscores that the incentives should be widely available to American households to encourage savers to seek advice and guidance from financial professionals.
CFP Board looks forward to building on this groundwork on Capitol Hill.