By Kelly Greene | The Wall Street Journal
President Barack Obama’s proposal to cap tax-deferred retirement contributions at $3.4 million is raising a lot of questions among financial planners.
And it already has generated at least one idea for a new estate-planning strategy.
First, in case you missed it: The president’s budget proposal for fiscal 2014, released Wednesday, includes a lifetime cap on savings in individual retirement accounts and other tax-deferred savings vehicles, including 401(k) plans and profit-sharing plans.
The reasoning is that a worker’s total account balance would be limited to the amount needed by a 62-year-old to buy an annuity generating an annual payment of $205,000. There are more details about this and other retirement-account provisions in the proposed budget in Saturday’s Weekend Investor cover story.
Already, we’ve heard from dozens of financial planners, estate-planning lawyers and savers themselves whose savings hover close to that level are asking questions about how it would work. Here are some:
If you’d like to discuss estate planning/asset protection, contact Laura Bianchi, Director RLG’s Estate Planning/Asset Protection Department, lbianchi@roselawgroup.com
