Referred to the House Committee on Ways and Means.
This bill amends the Internal Revenue Code to limit annual contributions and increase required minimum distributions (RMDs) for high‑income taxpayers who have very large aggregate retirement account balances. It creates a new section (409B) that prevents ‘‘applicable taxpayers’’ whose prior‑year modified adjusted gross income exceeds specified thresholds from making contributions once their aggregate vested retirement balances exceed a $10,000,000 benchmark (adjusted for inflation after 2027).
Left emphasizes tax fairness and reducing tax‑favored wealth concentration.
Relative to its intended legislative type, this bill is a clearly substantive amendment to the Internal Revenue Code that establishes new legal limits and tax consequences and supplies detailed operational rules and cross-references to implement those changes.
This bill amends the Internal Revenue Code to limit annual contributions and increase required minimum distributions (RMDs) for high‑income taxpayers who have very large aggregate retirement account balances.
It creates a new section (409B) that prevents ‘‘applicable taxpayers’’ whose prior‑year modified adjusted gross income exceeds specified thresholds from making contributions once their aggregate vested retirement balances exceed a $10,000,000 benchmark (adjusted for inflation after 2027).
The bill adds an excise tax on excess contributions, increases RMDs for large balances (with special treatment for Roth amounts and illiquid ESOP holdings), requires certain plan changes permitting immediate distributions, and sets differing effective dates (contribution limits apply to taxable years beginning after 2026; increased RMDs and plan changes apply after 2033).
Technically targeted and revenue‑raising measures have some path, but complexity, industry resistance, and politics make enactment uncertain.
Relative to its intended legislative type, this bill is a clearly substantive amendment to the Internal Revenue Code that establishes new legal limits and tax consequences and supplies detailed operational rules and cross-references to implement those changes.
Left emphasizes tax fairness and reducing tax‑favored wealth concentration.
These are examples from the analysis, not a ranked list of the most-affected groups.
Left emphasizes tax fairness and reducing tax‑favored wealth concentration.
Likely broadly supportive.
The bill targets very large tax‑favored retirement accumulations among high‑income taxpayers, which aligns with redistribution and tax‑fairness goals.
It is seen as a way to reduce tax‑preferred wealth concentration and raise revenue, though implementation details matter.
Cautious conditional support.
The bill advances an understandable fairness goal but creates complex new rules and compliance burdens.
Centrists will weigh distributional benefits against administrative costs and possible effects on retirement saving incentives.
Likely opposed.
The bill is seen as federal overreach into private retirement savings, penalizes success, and creates complex new rules that undermine incentives to save and invest.
Conservatives will emphasize property rights and regulatory burdens on employers and savers.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically targeted and revenue‑raising measures have some path, but complexity, industry resistance, and politics make enactment uncertain.
The bill has not accumulated any surfaced votes yet.
Left emphasizes tax fairness and reducing tax‑favored wealth concentration.
Technically targeted and revenue‑raising measures have some path, but complexity, industry resistance, and politics make enactment uncertai…
Relative to its intended legislative type, this bill is a clearly substantive amendment to the Internal Revenue Code that establishes new legal limits and tax consequences and supplies detailed operational rules and cro…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.