American-Families Plan - Elimination of Backdoor ROTH

[Em-Dog]

I just read that part of the recently proposed American Families Plan is getting rid of the backdoor ROTH and mega backdoor ROTH which would start in 2022. Has anyone read more about this yet or have any thought?

It is what it is I suppose and we'll just direct that money to a taxable brokerage instead. It still has to pass of course.

Would be a bummer as I just did my first contribution and conversion this year.

[secondcor521]

It's been discussed in a thread on another early retirement forum:

https://www.early-retirement.org/forums/f28/backdoor-roth-ira-strategy-may-not-last-111075.html

It's one of the ways being used to pay for the "Build Back Better Act", which is the name for the $3.5T bill currently being written in Congress.  It's my understanding that this bill incorporates at least some of, if not most of, President Biden's "American Families Plan Act".

Since the bill hasn't even been fully written yet, it's hard to say what's going to happen.  There is one version of the bill - HR5376) that passed out of the House Ways and Means Committee.  In that bill, the provision you're talking about is Section 138311, which starts on page 2,271 of the 2,468 page bill.

https://www.congress.gov/bill/117th-congress/house-bill/5376 - link to actual bill.
https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/SubtitleISxS.pdf - readable summary of the bill.

[Em-Dog]

Thanks @secondcor521 appreciate the links!