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

Key Points

• The bill prevents people earning over $400,000 a year from adding money to their IRAs or 401(k)s if their total retirement savings already exceed $10 million.
• Individuals with more than $10 million in these accounts would have to withdraw at least 50 percent of the money that sits above that $10 million limit each year.
• If a person's retirement balance goes over $20 million, they would be required to withdraw even more, specifically targeting money held in Roth accounts first.
• The goal is to stop the ultra-wealthy from using tax-free retirement accounts as a way to build massive fortunes that are never taxed.
• The new rules for stopping contributions would begin in 2027, but the rules forcing people to take money out would not start until 2034.

Impact Analysis

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