With the release of its 2016 spending blueprint Monday, the Obama White House officially signaled its intent to raise taxes on the wealthiest Americans, in part by placing limits on retirement savings.
The proposed budget, which allots $4 trillion in spending for fiscal year 2016, proposes to cap tax-deferred saving in 401(k) and Individual Retirement Accounts at about $3.4 million.
That amount of savings generates more than $200,000 in income annually when annuitized, an amount that should be sufficient for most, according to the Obama administration’s rationale behind the proposal.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
