Proposals that would limit rich investors' ability to save for retirement, but pay for a nice slice of the country's deficit, are worrying mutual fund companies, CNBC
One of the proposals prohibits taxpayers from making contributions and accruals when the accumulated value of the retirement savings is more than amount necessary to provide the maxim annuity. The second proposals would only allow contributions into the retirement account to be reduced from taxable income up to the 28 percent tax bracket.
Fund companies are campaigning against the proposals, saying that the government should be encouraging people to save more, not less. The other argument is that the budget proposals would create an accounting nightmare for plan administrators. That isn't going to sway the White House, however, Edward Kleinbard, law professor at the University of Southern California says:
"The securities industry said, 'We don't have the technology,' but [Congress'] answer was, 'Yes, you don't have the technology, but you will when we tell you that you must,' " Kleinbard said, according to CNBC
Stay ahead of the news ... Sign up for our email alerts now