2022 Backdoor Roth IRA - Anyone doing this now "at-risk" of BBB passing?

[rantk81]

The first week of the year is when I generally try to do the Backdoor Roth IRA for my spouse and myself.

I'm hesitant to do it this time, in case a version of the BBB (or some other legislation) passes that retroactively removes the ability to do this.  What is everyone else thinking?

[Sandi_k]

We have always done our IRA contributions after we've done our taxes, so we know if we can do regular "front door" Roth contributions.

For the backdoor maneuver, this year, I would wait until after the midterm elections in November 2022.

If you're worried about missing out on market gains, open a regular non-retirement brokerage account, and invest the funds now. Then sell and transform them into Roth contributions at the end of the year, if the BBB bill doesn't pass.

[MrsSpendyPants]

I'm waiting.  Just thinking back to last year when several changes were made retroactive such as 10.2k of unemployment tax being made nontaxable halfway through tax filing season.  I have plenty of other buckets to fill in the meantime - IBonds, 529, HSA, taxable, so I'll still be in the market, just waiting until the end for backdoor roth.

[terran]

I don't need to use the backdoor, but if I did I would decide whether I would be more bothered if 1) I missed my last opportunity to contribute by waiting or 2) I had to do some extra work by contributing when it turns out I'm not allowed to. I think I'd contribute with the knowledge that there's small chance I'll need to undo the contribution. Here's a more detailed explanation of this line of thinking: https://thefinancebuff.com/what-if-congress-bans-backdoor-roth.html

If I had to make a guess, it would be that if the law is passed it will go into effect 1/1/23.