The Number of People With IRAs Worth $5 Million or More Has Tripled, Congress Says After ProPublica revealed that some wealthy Americans hold Roth IRAs worth hundreds of millions — compared to $39,000 for the average account holder — Democrats requested data. It shows more than 28,000 people with IRAs worth $5 million or more. Series: The Secret IRS Files Inside the Tax Records of the .001% ProPublica is a nonprofit newsroom that investigates abuses of power. The Secret IRS Files is an ongoing reporting project. Sign up to be notified when the next story publishes. Or text “IRS” to 917-746-1447 to get the next story texted to you (standard messaging rates apply). Also: Do you have expertise in tax law, accounting or wealth management? We’d love to hear from you. The number of multimillion-dollar individual retirement accounts has soared in the past decade, as more wealthy Americans use the tax-advantaged vehicles to shield fortunes from income taxes, according to new data released by Congress today. ProPublica Get Our Top Investigations Subscribe to the Big Story newsletter. Thanks for signing up. If you like our stories, mind sharing this with a friend? https://www.propublica.org/newsletters/the-big-story?source=www.propublica.org&placement=share®ion=national Copy link For more ways to keep up, be sure to check out the rest of our newsletters. See All Fact-based, independent journalism is needed now more than ever. Donate The data reveals for the first time the staggering amount of money socked away in tax-free mega Roth accounts: more than $15 billion held by just 156 Americans. The new data also shows that the number of Americans with traditional and Roth IRAs worth over $5 million tripled, to more than 28,000, between 2011 and 2019. The data was requested by Senate Finance Chairman Ron Wyden, D-Ore., and House Ways and Means Chairman Richard Neal, D-Mass., following ProPublica’s story last month exploring the rise of mega Roth IRAs. The story, based on confidential IRS data obtained by ProPublica, revealed that tech mogul Peter Thiel has the largest known Roth IRA, worth $5 billion as of 2019. In a Senate Finance hearing on retirement on Wednesday, Wyden said such massive accounts underscore the country’s inequalities. “Individuals at the very top — at the very, very top — are able to game the rules to get ahead and basically abuse taxpayer-subsidized accounts with pricey accountants and lawyers,” Wyden said. “This increases the already existing retirement inequality between retirement haves and have-nots to an extreme level.” Roth IRAs were established in 1997 to incentivize middle-class Americans to save for retirement. Congress imposed strict limits, including a cap on how much can be contributed to the accounts each year, which today stands at $6,000 for most Americans. The average Roth account was worth $39,108 at the end of 2018. But a select set of the ultrawealthy have managed to get around limits set by Congress and transformed the vehicle into a powerful onshore tax shelter. One wa . . . read the full article here.
Keywords: americans, million, retirement, congress, irs, worth, tripled, data, number, iras, tax, roth, wyden
DATE: 1997, 2011, 2019, today, Wednesday, each year, last month, the end of 2018, the past decade, several years ago, earlier this month, between 2011 and 2019
NORP: Americans, Democrats
MONEY: 6,000, 39,000, 39,108, 200,000, $1 million, $5 Million, $5 billion, $5 million, over $5 million, at least $5 million, multimillion-dollar, hundreds of millions, more than $15 billion, more than $40 billion
CARDINAL: 917, One, two, just 156, at least 59, nearly 3,000, more than 28,000
WORK_OF_ART: The Secret IRS Files, The Secret IRS Files Inside the Tax Records of the .001%