To amend the Internal Revenue Code of 1986 to impose limitations on high-income taxpayers with large retirement account balances.

Key Points

• This bill targets people who make a lot of money and have very large retirement accounts. If someone makes over $400,000 a year and their total retirement savings reach $10 million, they would be banned from putting any more money into their IRAs.
• People with more than $10 million in their accounts would be forced to take money out. They would have to withdraw at least half of the amount that is over the $10 million limit every year to prevent these accounts from growing indefinitely.
• For those with more than $20 million, the rules are even stricter. They would have to take out even more money, specifically targeting Roth accounts which usually allow money to grow tax-free forever.
• The goal is to make sure retirement accounts are used for actual retirement savings rather than as a way for the ultra-wealthy to avoid taxes on massive fortunes. The new contribution limits would start in 2027, while the forced withdrawals would begin in 2034.

Impact Analysis

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