Obama to propose limits on IRAs for the rich [View all]
Source: CNN
President Obama on Wednesday is expected to announce a plan that would prohibit individuals from reaping tax advantages on IRAs and other tax-preferred retirement accounts when the funds exceed $3 million.
By proposing the cap as part of its budget, the Obama administration is taking aim at those who stash many millions of dollars in tax-advantaged retirement accounts -- which it argues is more than enough to retire comfortably.
A $3 million balance in a tax-preferred account like an IRA would currently allow a saver to finance an annuity of $205,000 per year in retirement. Removing the tax advantages for funds exceeding that threshold would save the government an estimated $9 billion over a decade, according to a senior administration official.
Based on the $3 million cap, less than 0.1% of IRA and 401(k) savers would be impacted, according to analysis from the Employee Benefit Research Institute. About 0.03%, or 6,180, of the 20.6 million IRA accounts in EBRI's database had balances exceeding $3 million at the end of 2011, while 0.0041% of 401(k) accounts held $3 million or more by the end of 2012.
Read more: http://money.cnn.com/2013/04/10/retirement/obama-retirement-saving/index.html?hpt=hp_t4
= new reply since forum marked as read