How does this provide money to the government?
It appears to me that it is a restriction on the use of the funds bound up in an individuals IRA’s but they remain intact and shielded from the tax.
It won't if peopke know the new rules. But if someone doesn't and rollsover two different accounts he'll have to pay full income tax and a 10% penalty (if under 59 years old) on it. Surprise!
Also check to see if this rule change is matched with a CBO static analysis assuming that so many people will still do the same rollovers they have in the past, which means the government will get so much money over the next ten years so it can afford a new welfare program this year.