Proposals affecting Roth / Aftertax
I’ve seen it written different ways and different timeframes, I just want to clarify some specific questions. I put the 2032 because of the 10yr conversion window it seems we got before that part becomes affective.
1) Can someone do a Roth conversion in 2022? What about in 2032?
2) Can someone do a non-deductible contribution into a Traditional IRA, and then convert it over to an established Roth IRA? in 2022? What about in 2032?
3) Can someone make a Roth 401(k) employee deferral contribution, and then roll that amount over to a Roth IRA?
4) Can someone make an after-tax contribution (not part of the normal employee deferral), and roll that amount to a Roth IRA upon retirement? Any time frame on this (2022 vs 2032)?
Permalink Submitted by Alan - IRA critic on Mon, 2021-09-20 21:31
Yes for next 10 years. in 2032 high income individuals may not be able to convert at all.
This would be prohibited for everyone after 2021, effectively killing the back door Roth strategy.
No proposed retrictions here.
This would also end after 2021, effectively killing the mega back door Roth.
Remember, these are just proposed bills at this point.
Permalink Submitted by Maria Ku on Thu, 2021-09-23 23:20
1. only for pre-tax contributions after 2021.