# 119-s-5040: A bill to amend the Internal Revenue Code of 1986 to impose limitations on high-income taxpayers with large retirement account balances.

119-s-5040, A bill to amend the Internal Revenue Code of 1986 to impose limitations on high-income taxpayers with large retirement account balances., is a 119th Congress bill sponsored by Sen. Wyden, Ron [D-OR] (D-OR); status introduced; PRIA reads it as touching household money (as of 2026-09-04).

- Canonical: https://policyrisk.com/legislation/119-s-5040
- As of: 2026-09-04
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-5040
- Congress: 119
- Title: A bill to amend the Internal Revenue Code of 1986 to impose limitations on high-income taxpayers with large retirement account balances.
- Status: introduced
- Introduced: 2026-07-21
- Sponsor: Sen. Wyden, Ron [D-OR] (D-OR)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-09-04

## Summary

**Would cap annual retirement contributions for high-income taxpayers with very large account balances.** The cap ties allowed contributions to the difference between a $10 million threshold and an individual's total vested retirement balances. - High-income savers. Taxpayers with modified adjusted gross income above filing-status thresholds (ranging from $225,000 to $450,000) would face the new limit. If an individual's vested balances meet or exceed $10 million the allowable contribution can be zero. - Treatment of plan types and transfers. Contributions to SEP and SIMPLE plans are excluded from the definition of applicable annual contributions but reduce the remaining allowance. Rollovers and account transfers due to death, divorce, or separation are not treated as new applicable contributions. - Tax and timing. The bill adds a special excise tax for excess applicable contributions under section 4973 and applies to taxable years beginning after December 31, 2026.

## Provisions PRIA read

- Higher withdrawals for very large retirement accounts: mixed, high. If enacted, this bill would raise required minimum distributions for taxpayers whose prior-year aggregate vested balances exceed $10,000,000. If balances exceed twice $10,000,000, special limits would apply to the Roth portion of the increased amount. Distributions attributable to the increased RMD…
- Retirement contribution cap for high earners: mixed, high. If enacted, this bill would limit annual IRA and similar contributions for high-income taxpayers with very large retirement balances. You would be affected if your modified adjusted gross income exceeded the filing-status thresholds and your prior-year aggregate vested balances were large. The law…

## Related bills

- 119-s-891: Bipartisan Health Care Act
- 119-s-5071: Children's Safe Welcome Act of 2026
- 119-s-5022: Cannabis Administration and Opportunity Act
- 119-s-2819: Head Start for America's Children Act
- 119-s-4504: Full-Service Community School Expansion Act of 2026
- 119-s-3990: PrEP Access and Coverage Act of 2026

## Sources
- [119-s-5040 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/5040)

## Related
- [119-s-891: Bipartisan Health Care Act](https://policyrisk.com/legislation/119-s-891)
- [119-s-5071: Children's Safe Welcome Act of 2026](https://policyrisk.com/legislation/119-s-5071)
- [119-s-5022: Cannabis Administration and Opportunity Act](https://policyrisk.com/legislation/119-s-5022)
- [119-s-2819: Head Start for America's Children Act](https://policyrisk.com/legislation/119-s-2819)
- [119-s-4504: Full-Service Community School Expansion Act of 2026](https://policyrisk.com/legislation/119-s-4504)
- [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-5040 (as of 2026-09-04).