If they know how much you have in retirement savings, that number can be used against you for rightly earned Government benefits.
Just like social security was originally a tax-free benefit to all Americans, that all changed when the Government needed more money.
They created a way to tax 50 percent of the income benefit by “means testing.”
Because you have the “means”, meaning other sources of income, you were required to give some of your social security back to the Government.
Even Roth IRA’s could be brought into the formula. Because you have money in a Roth, it could be used against you. This is the illusion of Roth IRAs.
Today up to 85 percent of social security can be taxed.
Nothing is out of the realm of possibility.
The Government knows EXACTLY how much money you have AND what financial institution it resides in.
They are called 5498 forms and they tell the Government to the dollar how much you have in your account. They are probably the most dangerous tax form when it comes to Government overreach into your personal finances.
These forms are sent out by IRA custodians every year.
At this very moment there are Government tax actuaries looking at these accounts to determine how much more tax revenue can be created.