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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote]I think that later date is for Roth conversions not back door roths[/quote]

Aren't these the same thing (just two names for the same action)?[/quote]

No they are not.  The one that is delayed by 10 years is for [b]conversions of traditional pretax IRA amounts[/b] to Roth for people &gt;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 &gt;100K ish start being phased out of doing.  [b][u]The back doors use POST-tax money.[/b][/u] This is banned for all income levels.  It’s very confusing, which is what Congress is probably counting on.  I hope this helps.[/quote]

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

No.  Backdoors use POST-tax money.[/quote]

No, they do not. You contribute to a traditional IRA. That is pretax. You convert it and pay tax on the conversion (hopefully you kept it a small or 0 gain). Then it’s Roth money.[/quote]

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