Related proposals pertaining to qualified plans and individual retirement accounts. In addition, the Green Book includes the following proposals that pertain to qualified plans and IRAs:
- A limit on the total accrual of retirement benefits by prohibiting additional contributions or the receipt of additional accruals if the taxpayer has accumulated retirement benefits in excess of the amount necessary to provide the maximum annuity permitted under a defined benefit plan (currently $205,000 per year payable as a joint and 100 percent survivor annuity beginning at age 62). This amount is currently approximately $3.4 million at age 62.
- A general requirement that non-spouse beneficiaries of qualified retirement plans or IRAs must take distributions over no more than five years. Exceptions would apply for beneficiaries who are disabled, chronically ill, up to 10 years younger than the participant or IRA owner or a minor child (the minor child’s 5-year distribution period would commence upon attaining the age of majority).
- An extension to non-spouse beneficiaries of the ability to make 60-day rollovers of distributions from qualified plans or IRAs to non-spousal inherited IRAs. This proposal would afford non-spouse beneficiaries the same treatment for 60-day rollover purposes that surviving spouses currently enjoy.
- An exemption for participants and IRA owners with aggregate benefits under $75,000 from having to take required minimum distributions.