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S5422FEDERALIN_COMMITTEE
High Impact

Retirement Fairness Act (S. 5422)

Original title: Retirement Fairness Act

December 4, 2024

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently IN_COMMITTEE. The next step in the legislative lifecycle is Floor Vote.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

The Frame

What this does

If enacted, this bill would change the tax and withdrawal rules for high-balance retirement savers, potentially increasing their annual tax obligations while providing new funding for Social Security trust funds.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

High-balance retirement savers

Individuals with aggregate retirement account balances exceeding $4 million will face new contribution restrictions and increased mandatory distribution requirements.

Social Security beneficiaries

The Social Security trust funds will receive 50% of the revenue generated by the new tax provisions, potentially impacting the long-term solvency of these funds.

Retirement plan administrators

Administrators must provide new reports and notifications to the Secretary of the Treasury and account holders to ensure compliance with the new limits.

What changed

Current stage: IN_COMMITTEE.

What's next

Floor Vote.

Summary

This bill proposes new limits on contributions to retirement accounts for individuals with total balances exceeding $4 million and requires those individuals to withdraw larger minimum amounts annually. It also directs 50% of the resulting tax revenue to the Social Security Old-Age and Survivors and Disability Insurance Trust Funds.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Why It Matters

If enacted, this bill would change the tax and withdrawal rules for high-balance retirement savers, potentially increasing their annual tax obligations while providing new funding for Social Security trust funds.

Frequently Asked Questions

Does this bill affect all retirement accounts?
It applies to 'applicable retirement plans,' which include s (like 401(k)s), 403(b) annuity contracts, 457(b) deferred compensation plans, and individual retirement plans (IRAs).
What happens if I have more than $4 million in my retirement accounts?
You would be subject to new contribution limits, meaning you may be prohibited from making further annual additions, and you would be required to take larger minimum distributions from your accounts.
When would these changes take effect?
The provisions are set to apply to taxable years beginning after December 31, 2024.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Lobbying Activity

AARP

$4,110,000

2026

HEALTH ISSUESMEDICARE/MEDICAIDLAW ENFORCEMENT/CRIME/CRIMINAL JUSTICEPHARMACY

P.L. 119-21, One Big Beautiful Bill Act H.R. 8867, Planning for Long-term Aging Needs (PLAN) Act H.R. 5861, Legacy Act of 2025 H.R. 9393, the Lower Costs, More Transparency Act. H.R. 9396, the Prior Authorization Accountability Act. S. 4916, the Aging with Artificial Intelligence Act. H.R. 8100, Safe Staffing Saves Lives Act. S. 3886, Nurses Belong in Nursing Homes Act. H.R. 6766/S. 3492, the Essential Caregivers Act of 2025. H.R. 7966/S. 4118, Hospice Care Accountability, Reform, and Enforcement (Hospice CARE) Act. S. 2120, the Older Americans Act Reauthorization Act of 2025 H.R. 5575, the Firefighters Assisting Seniors to Emergency Response (FASTER) Act of 2025. H.R. 3954/S. 4641, Improving Access to Medicare Coverage Act. H.R.5554/S.2831, Stand Strong for Medicare Act. S. 3439/H.R. 6735, Connecting Caregivers to Medicare Act and efforts related to the bill S. 1227/H.R. 2491, Alleviating Barriers for Caregivers Act S. 668/H.R. 3183, Supporting Access to Falls Education and Prevention and Strengthening Training Efforts and Promoting Safety Initiatives (SAFE STEPS) for Veterans Act of 2025 CMS-1851-P, Hospice Proposed rule. CMS-1843-P, Skilled Nursing Facility Proposed rule. CMS-1844-P, Home Health Proposed rule. No bill number. Health care transparency. No bill number. Discussed use of artificial intelligence and health data technology. No bill number. Discussed health-related policies and activities around the fall respiratory virus season. No bill number. Discussed health insurance affordability proposals. No bill number. Discussed Nursing Home staffing standards, safety, and quality. No bill number. Discussed Nursing home transparency and ownership requirements. No bill number. Discussed home health, hospice, and long-term care. No bill number. Discussed falls prevention. No bill number. Discussed social isolation. No bill number. Discussed HUD Assisted Living Requirements No bill number. Discussed family caregiving. No bill number. Discussed AARP paper on Medicare Caregiver Training Services. No bill number. Discussed Medicaid community engagement interim final rule, including the family caregiver exemption. No bill number. Discussed the paid direct care workforce in long-term care. No bill number. Discussed the unaffordability of long-term care. No bill number. Discussed Money Follows the Person Rebalancing Demonstration Program and Medicaid HCBS spousal impoverishment protections. No bill number. Discussed Medicaid fraud and family caregivers, Medicaid self-direction programs. No bill number. Discussed sandwich generation family caregiver hearing and submitted a statement for the record discussing family caregivers and sandwich generation caregivers, programs that support them, AARP caregiving resources, and federal policies to support sandwich generation caregivers and caregivers more broadly. No bill number. Discussed long-term care. No bill number. CMS-2453-NC; Medicaid Program; 2028 Medicaid Home and Community-Based Services Quality Measure Set Submitted comments No bill number. Discussed expanding access to home care. No bill number. Discussed the increasing cost of home care No bill number. Discussed HSA use for telehealth chronic care management services/subscriptions. No bill number. Discussed artificial intelligence and technology

MEHLMAN CONSULTING, INC.

on behalf of NORTHERN TRUST

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Revenue Linkage

The bill explicitly links tax revenue from high-balance retirement accounts to the solvency of Social Security trust funds, a specific earmarking strategy.

Connected Entities

organizationSecretaryThe Secretary may prescribe forms and methods for allocation of excess contributMap →
bill_numberInternal Revenue Code of 1986The legislation amends this code.Map →
organizationCommittee on FinanceThe bill was referred to this committee for consideration.Map →
personMr. MerkleyIntroduced the bill in the Senate.Map →

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy65
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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