The current House of Representatives’ Ways and Means Committee’s draft document for changes to Roth conversions (see: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiLm725k5v0AhWPLTQIHbrcBgIQFnoECAIQAQ&url=https%3A%2F%2Fwaysandmeans.house.gov%2Fsites%2Fdemocrats.waysandmeans.house.gov%2Ffiles%2Fdocuments%2FSubtitleISxS.pdf&usg=AOvVaw1_7PYccRiQXk0ekGvTmg2X ) says this regarding converting to Roth After-tax money (from nondeductible Traditional contributions). Specifically see Sec. 138311. Tax Treatment of Rollovers to Roth IRAs and Accounts. on page 11, part of which is quoted next.

“Furthermore, this section prohibits all employee after-tax contributions in qualified plans and prohibits after-tax IRA contributions from being converted to Roth regardless of income level, effective for distributions, transfers, and contributions made after December 31, 2021.”.

I’ve had a mixture of After-tax and Pre-tax in my Traditional IRA for decades and have been converting portions of it to my Roth IRA during the last few years and intended to continue to do that for the next few years. I haven’t made a non-deductible Traditional IRA contribution in the last 5 or 10 years.

When making a distribution, the After-tax and Pre-Tax cannot be separated such that every distribution from a Traditional IRA with some After-tax money will contain some of the After-tax contributions on a Pro-Rata basis.

Will I be locked out of making a Roth Contribution from my Traditional IRA because it will have some After-tax money in it? I would feel better if the above quote said that it is OK to convert only After-tax contributions made BEFORE 12/31/2021 to a Roth AFTER 12/31/2021.

Thanks