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Mega-IRA Tax Changes Resurface in Draft of U.S. House Bill

  • Democrats revive tax change left out of Biden plan framework
  • Plan focuses on wealthy who have deferred taxes on millions
House Speaker On Center Stage With White House's $4 Trillion Agenda At Risk
Photographer: Ting Shen/Bloomberg

House Democrats are reviving changes to individual retirement accounts containing millions of dollars as lawmakers look to finalize the taxes on the wealthy to finance President Joe Biden’s agenda.

The changes included in a draft of the House bill released Wednesday place limits on the tax-advantaged accounts and gives the Internal Revenue Service more oversight over them. The legislation, which House leaders say could get a vote as soon as Thursday, is not yet final and will likely undergo several more revisions as it moves through Congress.

The legislation would prevent contributions to traditional individual retirement accounts or Roth accounts once they reach $10 million and would require mandatory distributions for accounts that exceed that amount. The bill would also require accounts with at least $2.5 million to report their balances annually to the IRS.