Retirement Fairness Act

The Retirement Fairness Act establishes a $4 million limit on the total value of retirement accounts (including 401(k)s, IRAs, and other qualified plans) for individuals. If an individual's combined retirement account balances exceed this amount, the bill limits annual contributions to those accounts and increases minimum required distributions. The $4 million threshold will be adjusted annually for inflation starting in 2025. The law applies to taxable years beginning after December 31, 2024, with a phased-in approach for 2025. The bill also requires retirement plans to report account balances to the IRS and transfers 50% of additional revenue from these provisions to Social Security trust funds.