In mid-September, Chairman of the House Ways and Means Committee Richard Neal (D-Mass.) introduced an amendment to the budget reconciliation legislation that would make a number of changes to IRAs. These changes include:
- Prohibiting an IRA from holding certain private investments. If an IRA held a security where the issuer of the security required the holder to satisfy certain asset, income, or education requirements (such as investments only offered to accredited investors), the IRA would lose its IRA status and would be treated as having distributed the fair market value of the IRA's assets as of the first day of the taxable year.
- Prohibiting contributions to an IRA if a taxpayer's combined IRA and defined contribution retirement accounts exceed $10 million.
- Imposing mandatory distributions (up to 50% of the amount over the $10 million threshold) for high-income taxpayers with over $10 million in an individual's combined traditional IRA, Roth IRA, and defined contribution retirement account balances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
