- Changes on the Senate floor made its bill consistent with the House version loosening up 401(k) hardship withdrawal rules, permitting plan participants to take out earnings on their accounts in addition to principal amounts, and dropping a requirement that they have tapped out maximum plan loans before taking a hardship withdrawal;
- The Senate version of the elimination of employer’s ability to deduct qualified transportation fringe benefits is broader in scope than the House version.
- The Senate bill, unlike the House version, eliminates the “qualified bicycle commuting benefit” reimbursement exclusion, until 2025.
- The Senate bill includes a provision absent in the House version that would grant employers tax credits for paid family leave benefits to “qualifying” employees, subject to several limitations.
- The Senate bill does not include a House bill provision that would eliminate the employee tax exclusion for adoption assistance programs.
How the Senate bill affects employee benefit taxes
Published Updated
5 Min Read
Richard Stolz
Principal, Stolz Communications
Richard Stolz is a freelance writer based in Rockville, Md.
