January 31, 2025
Contact: IAA VP of Communications & Marketing Janay Rickwalder
The Investment Adviser Association (IAA) is calling on Congress to extend and expand Section 199A of the Tax Cuts and Jobs Act (TCJA) to ensure investment advisers receive the same tax benefits as other small business owners.
Section 199A allows owners of pass-through businesses to deduct up to 20% of their qualified business income. While Congress originally intended for all small businesses to benefit from this deduction, guidance from the Treasury Department has excluded investment advisers from full access to the tax break if their income exceeds certain thresholds.
“It is essential that investment advisers receive the same support as other small businesses,” said Karen Barr, President and CEO of the Investment Adviser Association. “These professionals help millions of Americans save for the future, yet they are unfairly excluded from the full benefits of Section 199A. Congress must act to level the playing field.”
The IAA urges Congress to extend Section 199A and clarify that investment advisers are eligible for the full deduction, just like other small business owners. This would ensure fair treatment across the industry and support the financial well-being of millions of Americans.
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About the Investment Adviser Association
The Investment Adviser Association (IAA) is the leading trade association representing the interests of fiduciary investment adviser firms. The IAA’s member firms collectively manage more than $35 trillion in assets for a wide variety of institutional and individual investors. In addition to serving as the voice of the advisory profession on Capitol Hill and before the SEC, DOL, CFTC and other U.S. and international regulators, the IAA provides extensive practical and educational services to its membership. For more information, visit investmentadviser.org or follow us on LinkedIn and YouTube
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