Watch as I provide my assessment of the lay of the land in terms of the possibility Congress repeals the Backdoor Roth IRA. I also provide an assessment of the potential downside if the Backdoor Roth IRA is retroactively repealed during 2022.
I discuss the possibilities on my blog
This video, the show notes, and any comments are for educational purposes only. They do not constitute tax, legal, financial, and/or investment advice for any person. Consult with your own advisors regarding your own matters….(read more)
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hmmm it's May 2022 and I converted 6k from traditional to roth and started investing. Maybe I should have waited to the end of the year -.- ….
I'm having a hard time. I started backdoor IRAs in Feb 2022. Like many others, I opened my accounts, contributed $6k to the traditional IRA from my post-tax external bank account, and am looking into the f8606 and f1040 L4b relationship. Since I did this in 2022 (i.e. after Dec 31, 2021) and want to apply this to the 2021 tax year, how do I fill out my taxes so this $6k does not get counted twice? I don't think I can put -0- in for L4 on the f8606. Do I put the $6k in L4a instead of L4b of the f1040? Do I put a -0- in L8 of f8606 (which also doesn't seem right)? Do I have to do some sort of multi-year process? HELP??
I took a break from 401k After-tax to Roth IRA rollover at the end of 2021 because it looked like BBB was going to pass. However, I started it back up in 2022 while I still can. For my 401k plan, it was a good way to get money out of the company plan into my own IRA because it allowed in-service withdrawals of After-tax money.
But Treasury wont have regulation details out in July if Congress repeals it retroactive. Either way I think you're right that retroactive is very unlikely and even if they do its probably worthwhile to still do the backdoor ROTH now anyways.
I am with you, highly doubtful they would repeal retrospectively to Jan1. I actually don’t understand how eliminating backdoor Ruth’s will help the cost of the “Build Back Better” that would be needed now. Seems political.
Good advice and nice GMUSL law review issue in the background.