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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I'm just seeing this thread.  Can someone help me by answering some questions?

We're 65 and 55, and have never used a backdoor Roth.  We have $300K in a recent after-tax bonus and aren't sure where to put it now.

If we put it into a backdoor Roth, then

1). Is it grandfathered in if they close this loophole soon -- and we don't take distributions for a decade or so?

2).  I don't really get the difference between this and just investing it in a brokerage account and later paying capital gains?  Do we not have to pay any kind of taxes at all on distributiosn from a backdoor roth?

Thanks for advisign. 
[/quote]

I mean... you can each backdoor $6k in to a Roth if you do it by end of year, even if this passes.  Seems unlikely you can use a megabackdoor (depends on employer plan), but you could look into it.  It may not be worth your effort to try to shelld $12k out of $300k, but that is possible.  Unless you already have a traditional IRA.  #2, yes, you save the  long term capital gains.  And yeah, google it.

Put the rest in brokerage.

This bill won't meaningfully change your future.[/quote]

based on the proposals coming out I'd probably avoid any future Roth contributions period, and maybe scale down traditional 401k contributions as well.  it's clear they have a bulls eye painted on them.[/quote]

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