SB5040 limits contributions to retirement plans for high-income taxpayers with large account balances.

SB5040 amends the Internal Revenue Code to impose limitations on contributions to individual retirement plans for high-income taxpayers with large account balances. It introduces a new section 409B that sets a contribution limit of $10 million for applicable taxpayers. The bill also increases minimum required distributions for these taxpayers and imposes an excise tax on excess contributions. It applies to taxable years beginning after December 31, 2026, and includes provisions for inflation adjustments starting in 2027.

SB5040 limits contributions to retirement plans for high-income taxpayers with large account balances.

SB5040 amends the Internal Revenue Code to impose limitations on contributions to individual retirement plans for high-income taxpayers with large account balances. It introduces a new section 409B that sets a contribution limit of $10 million for applicable taxpayers. The bill also increases minimum required distributions for these taxpayers and imposes an excise tax on excess contributions. It applies to taxable years beginning after December 31, 2026, and includes provisions for inflation adjustments starting in 2027.