01.21.20
After Stretch IRAs, What Retirement Breaks Could Congress Chop Next?
by: Laura Saunders
Congress recently curtailed the tax benefits of so-called Stretch IRAs. There are other limits on retirement tax incentives circulating in Washington, such as requiring annual payouts from Roth IRAs. Current law requires annual withdrawals from traditional IRAs for savers who are age 72 and older, but it does not require them for Roth IRA owners. Another such proposal is one to limit the value of deductions for traditional IRAs and 401(k)s. Under current law, amounts contributed to these accounts are often fully tax deductible. Capping the size of tax-favored retirement plans is also suggested by some activists. This proposal would stop contributions to IRAs, 401(k)s, and similar plans once the accounts reached a certain size. Further growth through investment earnings and gains would be permitted. As proposed, the limit comes to about $3.4 million of total accumulation per person, although that could change or be indexed for inflation.
Read the full article on Wall Street Journal