Backdoor Roth for 2022
Watched Ed’s Morningstar interview from March 14th in another part of site specific to Backdoor Roth’s. Have also read other commentary elsewhere that SECURE Act 2.0 won’t likely pass Senate until late in year at best even with its overwhelming passage in the House. Based upon that, does Ed think the BBB bill that threatened Back Door Roth’s is now all but assured to be prospective and not even viable for consideration until 2023, if at all? In other words, is his confidence about not having to undo 2022 backdoor Roth’s even higher than a month ago?
Permalink Submitted by Alan - IRA critic on Tue, 2022-04-12 23:11
Can’t speak for Ed, but I think it is highly unlikely that any conversions of IRA basis (non deductible contributions) done in 2022 would have to be unwound or reduced in amount to only taxable amounts. The IRS and/or Congress rarely disallows transactions that were legal at the time of execution. Further, the IRA custodian industry would not react positively to such an IRS determination.