Obama vs Romney Again? Proposed Budget May Attack IRAs

Bodylanguage_480x360[1]You may have heard there are afew budget plans meandering around the capitol, one of which is President Obama’sproposed budget. We don’t have many details as of yet, but self-employedprofessionals should take note – they could be tax targets when it comes totheir retirement savings.

For retirement savers and thosemaking powerful use of an IRA, here’s at least one tidbit the rumor mill hasbeen circulating well before the budget’s release. If enacted, “wealthy”individuals would be pinched with a $3 million cap on their IRA holdings.

Several sources have reported onthis, to include Time Magazine in anarticle titled “Obama’s Budget Would Cap Tax-AdvantagedSavings.” Although $3 million may sound like a lot, it may end upaffecting more savers who otherwise might not be considered traditional taxtargets: self-employed individuals like doctors, lawyers, and entrepreneurs.The self-employed all have unique abilities (and needs) to contribute largeamounts to their IRAs.

So, who is the intended targetof this kind of a cap? One name keeps surfacing: Mitt Romney. Remember thatfabled $100+ million IRA, as pointed out by the Boston Globe in an article titled “Obama budget would pinch IRAs of wealthywith $3m cap.”

The analyses of the proposal are still being churnedout, and there are some important details to be hammered out as well. Atpresent, this cap is no more than a proposal and part of a budget plannone-too-well-liked by either side. Nevertheless, this kind of cap and itsprying look at tax-advantaged plans is worth watching. 

At IdahoEstate Planning we are the expertsyou need to know and trust. Work with us and we'll put together a plan thatworks for you and your loved ones. Remember, goodplanning is no accident.


Please login or register to post comments.