U.S. Speaker of the House Rep. Nancy Pelosi (D-CA) speaks as she joins religious leaders during a news conference outside the U.S. Capitol October 20, 2021 in Washington, DC.
Alex Wong | Getty Images
House Democrats proposed several rules to curb retirement accounts of the rich, part of a broad restructuring of the tax code tied to the party’s Build Back Better social and climate spending package.
Wealthy individuals with more than $10 million in retirement savings would have to draw down their accounts each year, in a new type of required minimum distribution, or RMD, according to updated legislation issued Wednesday evening by the House Budget Committee.
Lawmakers would also close “backdoor Roth” tax loopholes for the rich, and prohibit further individual retirement account contributions once those accounts exceed $10 million.
The measures are aimed at curbing the use of 401(k) plans and IRAs as tax shelters for the wealthy.
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The proposals were included in an initial House tax proposal in September. However, the White House stripped the retirement-plan rules from a $1.75 trillion framework issued Oct. 28 after lengthy negotiations with holdout members of the Democratic party, who were concerned about some tax and other elements of the package.