Even distributions from $1.5 million IRAs that earns 7% a year over the 10-year window would require a distribution of $214,000 annually, which would trigger the 5% surtax, he said.
“To mitigate the impact of the surtaxes on sales of highly appreciated assets, expect to see more installment sales,” Levine said.
“More conversions during the beneficiary’s lifetime or the purchase of life insurance using IRA money might make sense,” he added.
The plan will also raise taxes on some businesses and give the IRS more for enforcement.
It's unclear whether the plan has the full backing of Democrats in the House and Senate.