Obama benefits proposal criticized for retirement plan cap

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.

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