The Ways and Means Committee's proposed tax law changes zero in on how the super-rich use self-directed individual retirement accounts (IRAs).
Months after a story broke detailing the $5 billion that could come out of Peter Thiel’s retirement account tax-free, new tax proposals are aiming to put a stop to the practice of very wealthy investors taking advantage of favorable tax laws on IRA accounts.
The provisions are aiming at financial big-timers who supposedly use retirement-related tax rules to unfairly sock away more and more wealth — but could they hit the little guy’s nest egg instead? Bergman’s company serves more than 28,000 accounts with approximately $4 billion in assets under management. Those assets include pre-IPO stock, real estate, cryptocurrency, precious metals and private placements. The average account balance is $125,000, he noted.
‘Leveling the playing field for low-income investors’ “The intention of these provisions is to level the playing field for low- and moderate-income investors,” said a spokeswoman for the Ways and Means Committee, which is chaired by Rep. Richard Neal, a Democrat from Massachusetts. “The Chairman wants as many Americans as possible to achieve long-term financial security. He and policy staff are open to modifications to ensure we get these proposals right.
But investments geared to experienced investors might give them access to opportunities that others are missing. The Ways and Means Committee proposal said the bill “prohibits an IRA from holding any security if the issuer of the security requires the IRA owner to have certain minimum level of assets or income, or have completed a minimum level of education or obtained a specific license or credential.
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