The elimination of backdoor Roth IRA conversions has made it back into the latest version of House Democrats’ tax and spending bill.
President Joe Biden’s Build Back Better framework excluded the retirement planning provisions that were approved in the House Ways and Means Committee’s Build Back Better bill in mid-September.
How well do you understand required minimum distributions (RMDs), which the IRS describes as “the minimum amount you must withdraw from your [retirement] account each year”?RMDs can be complicated, and there are changes coming for 2022 related to how they are calculated: In short, the divisors are increasing, which means the amount required to be withdrawn is decreasing.
My wife and I are about 10 years from retirement.We want to begin converting money in our individual retirement accounts to a Roth IRA, but the tax bite looks like a problem
Willie Delwiche, investment strategist for All Star Charts, says that the messy, sloppy range-bound market that we've seen since February is going to continue sideways for a while but ultimately will resolve itself to the upside, confirming a consolidation that is healthy for the long term.
House Democrats proposed a rule to forbid Roth conversions for the wealthy as part of a broad package of tax increases on affluent Americans.
But there’s an irony in the proposal, according to tax experts.
Employers are increasingly offering a valuable retirement-saving tool to workers.In addition to traditional 401(k) plans, about 8 in 10 workplaces now let workers invest in a Roth 401(k), up from just 37% that offered the option in 2010, according to a recent survey from investing research firm Callan.
Advisers with clients who have large IRAs should be aware of congressional proposals targeting mega-IRAs — those holding more than $10 million — including a proposal for a mandatory 50% RMD of the amount over $10 million, Ed Slott says.
Many Americans are using a previously little-known tax method to boost their savings.Now, the government is trying to stop it.
The tax strategy at issue is the mega-backdoor Roth conversion and it has allowed some Americans to amass sizable balances in tax-free Roth retirement accounts
This week Democrats on the House Ways and Means Committee voted to advance dozens of proposed tax changes.Some are tax increases that would raise more than $2 trillion of revenue to help fund the party’s priorities.
Also proposed is an outright ban on the “mega backdoor Roth” conversion using workplace retirement plans, which allowed high-income Americans to put $58,000 into a Roth account this year.If passed, that proposal would be effective next year.
