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Retirement Savers Love the Backdoor Roth IRA Strategy. It Might Not Last.

·7 min read
Retirement Savers Love the Backdoor Roth IRA Strategy. It Might Not Last.

The tax strategy at issue is the mega-backdoor Roth conversion and it has allowed some Americans to amass sizable balances in tax-free Roth retirement accounts. On Sept. 15, the House Ways and Means Committee approved legislation from House Democrats that would prohibit use of the mega-backdoor Roth conversion starting Jan. 1, 2022. The proposal is one of a series of measures Democrats are backing in an effort to prevent the wealthiest Americans from shielding multimillion-dollar retirement balances from taxes.