Wyden Wants to Limit “Mega-IRAs”

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In late July, Senate Finance Committee Chair Ron Wyden and House Ways & Means Committee Chair Richard E. Neal released new data about the increased use of “mega-IRAs” over the last decade. According to the report, the number of Americans with at least $5 million in an IRA has more than tripled over the last eight years.

Traditional and Roth IRAs have limits on the amount an individual can contribute each year. However, hard-to-value assets, such as the stock of a start-up company, can be contributed to an IRA, where the assets can significantly appreciate in value.

Senator Wyden has not outlined the specific measures he would take to limit the “mega-IRAs,” but indicated that he plans to introduce language to existing bipartisan retirement bills.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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