Bill proposed to crack down on backdoor roth (and other loopholes)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ugh is killing the megabackdoor also back?

Yes. All backdoors proposed to close. If you have reps, write them.

Really? Even though I use a backdoor Roth, as someone with a HHI of $400K, I would be completely embarrassed to write a rep. It's just very poor taste for high income people to be writing a rep about something like this. I'd be more inclined to donate $6000 to charity than to write a rep. At a certain income level, you just put the $6000 in a brokerage account instead and be thankful you have it. Some of you people really are unbelievable.

Don’t be embarrassed. You don’t have to tell your rep how much you make. Now go write one.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This passes and Roths in general will be on the chopping block. I’m not supporting a tax savings vehicle that doesn’t help me.

Why doesn’t a Roth help you?

NP and I assume the PP has higher tax rates now than they anticipate they will in the future so a Roth won't help them.

[Anonymous]

Doubt the parental leave provision survives the senate. I also assume the SALT cap will be dialed back to something like $40k so there are probably still adjustments in the works.

[Anonymous]

The backdoor roth would not disappear until 2029?

https://www.thinkadvisor.com/2021/11/04/backdoor-roth-lockdown-plan-is-back-heres-what-advisors-should-do-next-ed-slott/

[Anonymous]

I think that later date is for Roth conversions not back door roths

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ugh is killing the megabackdoor also back?

Yes. All backdoors proposed to close. If you have reps, write them.

Really? Even though I use a backdoor Roth, as someone with a HHI of $400K, I would be completely embarrassed to write a rep. It's just very poor taste for high income people to be writing a rep about something like this. I'd be more inclined to donate $6000 to charity than to write a rep. At a certain income level, you just put the $6000 in a brokerage account instead and be thankful you have it. Some of you people really are unbelievable.

Don’t be embarrassed. You don’t have to tell your rep how much you make. Now go write one.

Sorry. It's not just about being embarrassed but feeling one is doing the right thing. There are apparently many Republicans on this thread though they probably convince themselves they are something else.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ugh is killing the megabackdoor also back?

Yes. All backdoors proposed to close. If you have reps, write them.

Really? Even though I use a backdoor Roth, as someone with a HHI of $400K, I would be completely embarrassed to write a rep. It's just very poor taste for high income people to be writing a rep about something like this. I'd be more inclined to donate $6000 to charity than to write a rep. At a certain income level, you just put the $6000 in a brokerage account instead and be thankful you have it. Some of you people really are unbelievable.

Don’t be embarrassed. You don’t have to tell your rep how much you make. Now go write one.

I wrote one to my rep and senators.

[Anonymous]

I think that later date is for Roth conversions not back door roths

Aren't these the same thing (just two names for the same action)?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ugh is killing the megabackdoor also back?

Yes. All backdoors proposed to close. If you have reps, write them.

Really? Even though I use a backdoor Roth, as someone with a HHI of $400K, I would be completely embarrassed to write a rep. It's just very poor taste for high income people to be writing a rep about something like this. I'd be more inclined to donate $6000 to charity than to write a rep. At a certain income level, you just put the $6000 in a brokerage account instead and be thankful you have it. Some of you people really are unbelievable.

Good for you. We are dual income with a HHI of <250K and do not feel embarrassed at all to express our anger at the broken campaign promise.

You are in the top 10% of income at least. You are not owed a backdoor Roth.

I’m not owed anything. But it will certainly impact whether I vote D next time given the promise not to raise taxes <400K, the unwillingness to deal with step up basis at death, and the continued focus on taxing wage earners to pay for all this stuff. I note also the 400/450K aren’t indexed to inflation for 10 years, so they will slowly creep like the AMT and Obamacare net investment income taxes to hit more and more working people they weren’t intended to hit. And with the rate of inflation they will hit quickly.

[Anonymous]

Anonymous wrote:

I think that later date is for Roth conversions not back door roths

Aren't these the same thing (just two names for the same action)?

No they are not. The one that is delayed by 10 years is for conversions of traditional pretax IRA amounts to Roth for people >400/450K (which is not indexed to inflation until then…). If you are under 400/450K you will still be able to convert pretax IRA to Roth (this is a taxable event, one people tend to do in years where their brackets are lower). The one that is immediate/2022 is banning all back door and mega back door Roths, which is something people who earn >100K ish start being phased out of doing. The back doors use POST-tax money. This is banned for all income levels. It’s very confusing, which is what Congress is probably counting on. I hope this helps.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ugh is killing the megabackdoor also back?

Yes. All backdoors proposed to close. If you have reps, write them.

Really? Even though I use a backdoor Roth, as someone with a HHI of $400K, I would be completely embarrassed to write a rep. It's just very poor taste for high income people to be writing a rep about something like this. I'd be more inclined to donate $6000 to charity than to write a rep. At a certain income level, you just put the $6000 in a brokerage account instead and be thankful you have it. Some of you people really are unbelievable.

Don’t be embarrassed. You don’t have to tell your rep how much you make. Now go write one.

Sorry. It's not just about being embarrassed but feeling one is doing the right thing. There are apparently many Republicans on this thread though they probably convince themselves they are something else.

Sure, Doing the right thing by volunteering up other people’s money.

I have an income of around 400k and wrote my members. I also donate a large part of my income to charity so that is where I’m “doing the right thing” for the good of those less privileged. But I get to direct where my money goes based on my values.

[Anonymous]

Roth conversions are terrible tax policy— just make the tax system elective

[Anonymous]

Anonymous wrote:Roth conversions are terrible tax policy— just make the tax system elective

How now brown cow?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

I think that later date is for Roth conversions not back door roths

Aren't these the same thing (just two names for the same action)?

No they are not. The one that is delayed by 10 years is for conversions of traditional pretax IRA amounts to Roth for people >400/450K (which is not indexed to inflation until then…). If you are under 400/450K you will still be able to convert pretax IRA to Roth (this is a taxable event, one people tend to do in years where their brackets are lower). The one that is immediate/2022 is banning all back door and mega back door Roths, which is something people who earn >100K ish start being phased out of doing. The back doors use POST-tax money. This is banned for all income levels. It’s very confusing, which is what Congress is probably counting on. I hope this helps.

But... isn't "conversions of traditional pretax IRA amounts" a backdoor roth?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

I think that later date is for Roth conversions not back door roths

Aren't these the same thing (just two names for the same action)?

No they are not. The one that is delayed by 10 years is for conversions of traditional pretax IRA amounts to Roth for people >400/450K (which is not indexed to inflation until then…). If you are under 400/450K you will still be able to convert pretax IRA to Roth (this is a taxable event, one people tend to do in years where their brackets are lower). The one that is immediate/2022 is banning all back door and mega back door Roths, which is something people who earn >100K ish start being phased out of doing. The back doors use POST-tax money. This is banned for all income levels. It’s very confusing, which is what Congress is probably counting on. I hope this helps.

But... isn't "conversions of traditional pretax IRA amounts" a backdoor roth?

No. Backdoors use POST-tax money.