Because of imperfections in the IRS Tax Code related to retirement plans, coupled with the fact that some very high income US citizens have as one of their missions to greedily bend the tax code to their advantage in excessively obscene ways, some IRA asset accumulations have reached incomprehensible high levels. And also given the $16 trillion US Debt level, it only makes sense that steps be taken now to rein in this problem.
My recommendation is that, starting in 2013, there be a limit on the US Federal Income Tax Benefit Rate of 28% for all IRA and similar Contributions.
And the US Government should study in detail just how so many of these IRA asset accumulations have gotten to be much higher than $10 mil, and take the necessary steps to change the IRS Tax Code to prevent this from ever happening again, in situations where the extremely high IRA asset accumulations were inappropriate.
All of the money raised here by the US Government should be used to reduce the US Debt.
