401(k) Industry Walks Tightrope in Congress to Protect Tax Break

Industry advocates promoting legislation in 2025 allowing public school teachers and nonprofit workers to use low-cost collective investment trusts for retirement are taking pains to avoid losing 401(k) tax incentives for workers in the process.

The retirement industry is making this expansion of the use of 403(b) plans through CITs a top legislative priority in Congress, according to advocates, after the goal was left out of two previous landmark federal retirement laws and the last government spending bill.

Yet timing is an issue, as some worry that a push around 403(b)s in 2025 will draw more attention to the employer-sponsored ...