Obama says no to fat retirement accounts

The president's upcoming budget plan is expected to cap IRA balances at $3 million.

By Kim Peterson Apr 5, 2013 2:50PM
Portfolio Account statement -- Alamy Creativity, AlamyThe multimillion-dollar retirement accounts favored by Mitt Romney are on the outs in the new budget proposal from President Barack Obama.

The president's budget plan, expected to be introduced next week, would ban anything above $3 million in individual retirement accounts, Bloomberg reports. Because those accounts get some key tax breaks, capping them would generate about $9 billion in revenue for Uncle Sam over the next 10 years.

Obama is essentially asking people this: How much do you really need for retirement? Some wealthy people are socking away millions in these accounts, much more than they actually need, the White House said in a statement.

A White House official put it this way to Politico: Obama's proposal caps retirement accounts at an amount that would provide someone about $205,000 per year in retirement.

You could put as much as you want in your Wells Fargo (WFC) savings account or other accounts. It's just the tax-favored retirement accounts that are being scrutinized here.

As it stands, some retirement accounts are so loaded that people are using them more for estate planning. One accountant told Bloomberg that the wealthy are using retirement accounts to pass money to heirs in a tax-friendly way.

The White House isn't mentioning Romney by name, but his IRA was in the public spotlight last year. At one point, the account exceeded $100 million. Most taxpayers are limited to a $5,500 contribution for 2013, Bloomberg reports.

So far, Obama isn't saying how he plans to cap IRA amounts. The $3 million cap would apply to the total of all of a person's tax-favored retirement accounts, not a single account.

More on moneyNOW


Apr 5, 2013 4:00PM

Next will be the smaller IRA's and 401Ks.  For those that save so not to rely on Social Security, let's penalize.  He wants EVERYONE to be reliant on the government programs.  From community organizer to the WORST President EVER

It's only a matter of time until all IRA accounts will be tapped into to pay for his crap, regardless of how much money is in it.  Nothing with this man is sacred.  He won't be satisfied until we are all in the poor house......his idea of "social justice".
Apr 5, 2013 3:57PM
Typical liberal response.. Don't save and the we will take care of you!!
What a joke! 
But considering this President never had a real job and didn't pay a dime for his education, he thinks that's the normal way!!
Apr 5, 2013 3:59PM
The American Fuhrer continues to wage his war on prosperity.   All our wealth really belongs to the demonazis.   You are not entitled to what you earned, neither are your heirs.   All must be given to the giant behemoth and god we call gov't.   Everyone shall worship at the feet of the gov't.   Just stand next to the press and do what they do.   Mentally felate Obamugabe every day.  Meanwhile, each and every one of these nazi bastards gets a pension worth WELL over $3 million, but that's for them, not for us even though WE pay for it, and they never did anything of value to earn it.  No, the wealth creators are not entitled to what they made and created.   No, it must be taken and given to illegal immigrants, lazy welfare recipients, and those on food stamps so they will continue to vote for the demonazis.   The demonazis can't win on issues, they have to keep buying votes, and your money will be what they use to buy them.
Apr 5, 2013 4:15PM
Work and save for a retirement that is good. Invest wisely for 30 years and then get screwed at the end. Next will be a tax on the amount of savings that you have. Legal robbery by liberals!!!!!
All I can say these days is " thank god its his last term"
Apr 5, 2013 4:00PM
F'n liberal money grab ramping up. Socialism running rampant. How much more of this crap does this administration think people will stand for when everything you worked hard for is stripped from you to support the have-nots. The problem with socialism is you run out of other people's money!
Apr 5, 2013 4:25PM

How much do you need for retirement? That's a good question. Apparently here in California, Police, teachers, firefighters - all noble professionals -but for some reason THEY need 80% of their highest paid year salary from age 55 on for the rest of their lives.


Now I ask you - how much money does an individual have to sock away to equal 80% of their highest salary for the next 40 years (living to 95 is not inconceivable)?

Apr 5, 2013 4:37PM
This is a total load of C-R-A-P!  The 401K is invented, becomes law and corporate America used it as a convenient escape route from providing employees a decent pension.  The IRA comes along and allowed contribution levels are paltry.  Now Social Security is bound for insolvency and the amount any contributor will receive is questionable, at best.  I have worked my trail off all of since starting a newspaper route at the age of 12.  Saved, invested, and lived far below my means.  Now this ignorant bozo comes along and tells me I've invested too much for my own good?  What gives??  I am not the one who is confused here.  Another O'Bummer moment.
Apr 5, 2013 4:37PM

Again, who elected this "FRAUD IN CHIEF" as KING OF AMERICA. 


This is America - land of the free not Communist China.  I have never made a 6 figure salary and have over $500K in retirement accounts.  I have made chooses how to deal with MY MONEY and I do not need this **** telling me what I can do and can't do with MY MONEY.


Cut the class welfare out and let the free market play out.  Everyone will be better off.

Apr 5, 2013 4:22PM

And do you really think you're going to get tax free benefits from your ROTH IRA just because the title on the application says ROTH.   This will be the ultimate test of politics as these accounts can be quite attractive over the long-term.   Trouble is I just don't know what the rules are going to be over the long-term.  But, I can make an educated guess based on the integrity of our present politicians.  Careful, careful.


Obama is such a financial guru - lets see he (1) wrote a book and (2) is constantly work on his  public relations.  No experience here - I guess we're in for a long recession.  Ah, but we already knew that....and voted for more of the same.  Dumbing Down of America.


His ideas are so foolish and so redundant - everything points to those with success as being "the problem."    A shallow thinker, at best, with no solutions, just divisive jealousy.



Obama wants cuts to anything the average american wants to do to make themselfs a better life. THE ANTI CHRIST IS AT IT AGAIN
Apr 5, 2013 4:44PM
there is nothing I hate more than some halfwit  liberal telling me  what I don't  need.
Apr 5, 2013 4:00PM
Just look at what Cyprus had to do because of unchecked spending? The citizen's there never thought the government would just take 10% of their money. Even if was was on $300,000 and up it still shows what has to be done when we have to pay for all those printing presses!
Apr 5, 2013 4:14PM
I didn't steal the money in my IRA!  So if you not winning and you don't like the rule you get to change them.  I call BS!
Apr 5, 2013 4:29PM
If you are capped at $5,500 per year, how did he get $100,000,000 into an IRA?

Whats next? Hey people if you smile you will get fined. how abouts that?


Apr 5, 2013 4:39PM
So he asks "how much do you really need for retiremen?t"  That is the scariest statement I've heard in a while.   So, now he's going to dicate how much money WE feel is necessary to live on? He's going to limit what our retirement is? But, he won't do that for Congress or himself, will he?  If "I" make the money then I should be able to save it for whatever I see fit!  Once I hit retirement my working status changes because it affects how much medicare and SS you qualify for..so at retirement I am at the mercy of whatever amounts I have saved.  Its not his right to make that determination!  And of course they are going to say put however much money you want into the banks..cause they intend to seize it like Cyprus did!!  When is America going to wake up and see this guy is just as dangers as Hilter was!
Apr 5, 2013 4:33PM

How much does someone really need to retire??

How about this, why does the president need to receive a lifetime annual salary after his presidency is over? How much money does THAT amount to? Isn't that well above what is needed for retirement??

Apr 5, 2013 4:43PM
So, democrats(socialists) like obama want to cap your IRA and at the same time give you peanuts in social security benefits--maybe even take away the SS benefits from the same folks he is capping.  This guy needs to be impeached.
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