An Obama administration proposal that would ban employees from earning additional benefits once the value of benefits earned in all their retirement plans hit a current cap of $3.4 million would be confusing, difficult to administer, and discourage some employees from making new contributions, experts say.
And the intended result of the proposal — embedded in the administration’s 2014 budget sent to lawmakers this month — a $9 billion boost to federal revenues over a 10-year period, may be illusory.
“What is the point? In the end, the money is going to be taxed,” said Anne Waidmann, a director with PricewaterhouseCoopers L.L.P. in Washington.