There has been news on proposed tax law changes to eliminate
ROTH IRA conversion for the wealthy. What is the status? Is it
stuck somewhere in legislation? Has it partially been approved?
Thanks
To the best of my knowledge there have been no changes to Roth IRA rules. There could always be changes between now and December 31 however. Thanks for your question!
Hello Loufurut,
Thank you for your question.
The proposed changes to the Roth Conversion laws were part of Build Back Better but as you know this law did not pass the Congress; therefore for now nothing has changed for Roth conversions.
It appears though that this issue is not dead as yet and is still being considered in the Congress. For further details you may refer to the following new article, however I would like to add that TurboTax cannot validate it's content or accuracy, so please before acting on it, do your due diligence.
Hope this answers your question, if not, please let me know.
The Build Back Better Act would have eliminated conversions of after-tax retirement savings to Roth IRAs as early as 2022, as well as prohibited high earners from making any conversions, beginning in 2032. This threat prompted some financial professionals to suggest their clients make conversions before the end of 2021. However, the Build Back Better Act proposal died in the Senate and never became law.