Remember how your IRA is supposed to let you pay taxes now and not have any tax consequences so long as you use the money in retirement.
Well, in the few short years that they have been in existence, the original plan is already under fire. Obama has proposed in his budget that if your retirement account exceeds $3M, you'll get another tax.
The cap proposal is a clear play to unlock some of the $10 trillion sitting in IRA and 401(k) accounts, which have become the primary retirement savings vehicles in America. Congress pried this door open a few months ago by toying with a law forcing heirs to liquidate an IRA within five years—almost certainly triggering otherwise avoidable income-tax payments. We may see that yet.
The $3 million cutoff is itself something of a mystery. The White House reasons that $3 million is enough to provide an annual annuity of $205,000, which it further reasons is plenty income for any retiree. Yet there’s a lot wrong with this line of thinking.How great is that! I love helping the gov't give more of my money away.
I wonder if the amount will be locked to inflation? Does the White House believe that the most we simple Americans should be allowed to live off is $205k/yr? How... Communist.
The worst part: Very few in media are talking about this. It doesn't show up in any of the major outlets front page. Not on Google News, not on CNBC, not on ABC, or CNN Money. I only knew about it from the radio yesterday and had to specifically search for the terms to find any news. Thank you, mainstream media, for covering up the agenda again.