This bill targets high-income earners with substantial retirement savings by imposing new restrictions on contributions and requiring increased withdrawals from their retirement accounts. Specifically, it caps annual contributions to retirement accounts at $10 million per person (adjusted for inflation) for taxpayers earning above $400,000 to $450,000 annually, depending on filing status. The bill also requires high-balance account holders whose retirement savings exceed $10 million to withdraw significantly more each year than current law requires—starting at 50 percent of amounts over the threshold, with higher withdrawal rates for those exceeding $20 million in savings. These restrictions take effect in 2027 for contribution limits and 2034 for withdrawal requirements, and the bill allows affected individuals to access their retirement funds without the standard 10 percent early withdrawal penalty to meet these new distribution obligations.
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