No major tax overall was proposed when President released the 2016 Budget Proposal, not yet deemed dead on arrival, but soon enough. A highlight or two affect IRAs:
Death of the backdoor Roth. The Roth IRA, generally speaking permitted lower wage earners the opportunity to contribute to the Roth, then upon reaching retirement will withdraw the money, paying no tax on the amount contributed or the earnings thereon. Using the backdoor Roth technique, higher earners contribute to a regular IRA and receive no deduction, but immediately convert to a Roth. The Budget Proposal eliminates this technique.
Mandatory distributions from Roth. Proposal says no contributions to a Roth after age 70 1/2 and mandatory distributions must be made after 70 1/2.
Eliminates the “stretch IRA”. Under current law, if you inherit an IRA, you can choose to withdraw the IRA over your life. The proposed budget allows the stretch but only if the spouse is the beneficiary. Others who inherit are limited to a 5 year payout.