President Biden is proposing draconian changes to retirement savings in IRAs and Roth IRAs as part of a desperate effort to pay for $3.5 trillion in irresponsible spending. In an attempt to paper over the bill’s exorbitant costs, Biden would make life far more difficult for middle class families and millennials who have invested heavily in private retirement savings for later in life and now face the prospect of an increasingly insecure retirement, double taxation, and losses.
Any changes to the IRA system will significantly dampen trust in the financial system and make savers and investors think twice before putting their hard-earned dollars on the line. Current IRA plans promise retirement security for people who work hard and save their money. If this ill-conceived plan succeeds, Washington will change the rules in the middle of the game, and people will be less likely to continue saving.
In particular, the plan will hurt middle-income IRAs held by families and millennials by increasing audits and introducing higher penalties and disincentives to save.
This is fundamentally unfair. It’s time to protect IRAs and reject any foolish proposal to tax and regulate them out of existence.
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