Bill caps retirement savings for high earners, forces big withdrawals by 2034.
S. 5040 — A bill to amend the Internal Revenue Code of 1986 to impose limitations on high-income taxpayers with large retirement account balances. · Filed by Ron Wyden (D-OR) · Introduced Jul 21, 2026 · Referred to committee
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What it does
The bill limits how much high-income earners can add to retirement accounts. High-income earners must have more than $10 million saved already. Starting in 2034, these people must withdraw more money each year. The government takes 37 percent of those withdrawals as taxes.
Who it affects
The bill affects high-income earners with more than $10 million in retirement savings. Most Americans do not have that much saved. Banks and investment companies must change their systems to allow forced withdrawals.
One thing to notice
Starting in 2034, people with very large retirement accounts must take out more money. The government takes 37 percent of it as taxes, which is much higher than normal.
From the analysis of the bill text, linked under Primary records below.
Where it stands
- Jul 21, 2026 — Introduced · Congress.gov: “Introduced in Senate”
- Jul 21, 2026 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Words to know
- retirement accounts — Savings accounts where people put money for when they stop working.
- high-income earners — People who make a lot of money each year from their jobs.
- forced withdrawals — Money the government requires people to take out of their accounts.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (16,596 characters) on Jul 24, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 14,206 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-09-17.
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