The plan would tax long-term capital gains as ordinary income for taxpayers with adjusted gross income over $ 1 million. That would translate to a top marginal rate of 43.4% including the new top marginal rate of 39.6% and net investment income tax of 3.8%, according to the Tax Foundation.

The House Ways and Means Committee released a competing proposal this week that would also raise the individual rate above 39.6%.

This marginal rate would apply to single tax filers with taxable income over $ 400,000, heads of households over $ 425,000 and married couples over $ 450,000, according to the House plan.

The maximum rate of capital gains would drop from 20% to 25%.

For most people, these changes shouldn’t affect their retirement accounts, said Mark Hamrick, senior economic analyst at Bankrate.

“The average American, that is, someone with a middle income, probably doesn’t have much to fear here,” he said. “But what I would say is continue to monitor this space for years to come.”

The need to increase tax revenues to close the federal deficit could make a difference, Hamrick said. “The calculations haven’t counted for a while. “

A Roth account is funded with after-tax dollars. Future withdrawals remain tax-free as long as you meet certain holding conditions. The current annual limit for a Roth is $ 6,000. If you are 50 or older, you can contribute an additional $ 1,000.