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The Retirement Fairness Act amends the Internal Revenue Code to impose a $4 million aggregate contribution limit on certain retirement plans with large account balances, including 401(k)s, IRAs, and eligible deferred compensation plans. Contributions exceeding this limit would be subject to existing excess contribution rules and a 6% excise tax. The bill also requires increased minimum distributions from retirement accounts once aggregate balances exceed the $4 million threshold, with the threshold adjusted annually for inflation.
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