Bill would bar high earners with large accounts from IRA contributions
WASHINGTON — Sen. Ron Wyden of Oregon and Rep. Richard Neal of Massachusetts, the Democratic Party’s top tax-law writers, have proposed legislation that would limit tax breaks for retirement accounts with balances exceeding $10 million, according to The Wall Street Journal.
The bill would bar individuals earning more than $400,000 who hold more than $10 million in retirement accounts from making additional contributions to individual retirement accounts, the Journal reported.
The Journal, reporting on the proposal Tuesday, identified startup founders and Silicon Valley insiders who have built multimillion-dollar retirement account balances by investing in companies such as Roblox and Nvidia before those companies went public, allowing the gains to accumulate inside tax-advantaged retirement accounts.
The legislation faces long odds of passage in a Republican-controlled Congress, the Journal reported. But it signals the measure could be a priority if Democrats take control of Congress in the November elections.