Regulatory Outlook | 09.15.21
House Democrats Propose New Retirement Plan Rules for the Rich
House Democrats on Monday proposed changes to retirement accounts for the wealthy, part of a restructuring of the tax code tied to the budget plan. Under the changes, individuals with retirement accounts exceeding $10 million would be prohibited from contributing extra savings and would have a new required minimum distribution each year, according to an outline of tax legislation unveiled by the House Ways and Means Committee. The measure would also repeal Roth conversions in individual retirement accounts (IRAs) and 401(k)-type plans for those making more than $400,000 a year; prevent savers from using the “mega-backdoor Roth” strategy, regardless of income level; and prohibit IRAs from holding investments that require buyers to be accredited investors. Separately, CNBC reports that House Democrats also proposed raising the top tax rate on capital gains and qualified dividends to 28.8 percent.
Read the full article on CNBC.