Are retirement accounts safe from taxation? According to Democratic lawmakers Senator Ron Wyden (D-Ore.) and Representative Richard Neal (D-Mass.), legislation was introduced specifically targeting "mega" retirement accounts. The proposed bill seeks to curb tax subsidies for massive accumulations in traditional IRAs, Roth IRAs, and defined contribution plans by imposing strict limits and mandatory distributions. According to the proposal, if a taxpayer's combined vested balance across all IRAs and defined contribution plans exceeds $10 million at the end of the prior year, they would be prohibited from making any further contributions to a traditional or Roth IRA. Taxpayers would be forced to withdraw 50% of any balance that exceeds the $10 million threshold each year. The non-Roth portion of these withdrawals would be subject to ordinary income tax. If a taxpayer's combined balance exceeds $20 million, the legislation mandates a 100% withdrawal of the excess above $20 million. This excess must be distributed first from Roth IRAs. While these Roth withdrawals would not be taxed (since they are funded with after-tax dollars), the capital would permanently lose its tax-sheltered growth status. These restrictions are designed to exempt middle-class savers and would only apply to high-income taxpayers. Specifically, the limits trigger for single filers earning over $400,000 and married couples filing jointly earning over $450,000 per year. While similar proposals were floated during the Obama administration and as part of the Build Back Better Act, they did not become law. This latest bill is highly unlikely to advance through the currently Republican-controlled Congress. However, the introduction of this legislation serves as a clear signaling mechanism. It outlines exactly what tax writers like Neal and Wyden plan to pursue if Democrats regain control of the House or Senate in 2027.