A new bill targets retirement accounts exceeding $10 million, requiring withdrawals and banning further contributions for high earners.
Democratic lawmakers introduced legislation to limit tax-sheltered retirement accounts exceeding $10 million, aiming to curb benefits for high-net-worth individuals. The bill would ban contributions for those earning over $400,000 annually and mandate withdrawals of 50% of balances above $10 million, with full withdrawal required for amounts over $20 million.
The proposal follows reports of billionaire Peter Thiel’s $5 billion Roth IRA, which grew from a $2,000 initial contribution. Over 32,000 individuals currently hold retirement accounts exceeding $10 million, according to Joint Committee on Taxation data. The bill seeks to preserve retirement savings incentives for middle-class workers while closing loopholes for the ultra-wealthy.
One economist has called for eliminating retirement account tax breaks entirely, arguing the system disproportionately benefits the rich. The bill’s fate remains uncertain in a divided Congress.