“The reports of my death have been greatly exaggerated”, attributed to Mark Twain.
While the early reports of the death of the backdoor Roth planning technique was premature, the likelihood of its death is not greatly exaggerated. There have been twists and turns in the proposed legislation, and more may be ahead. But for now, the budget reconciliation bill has provisions that would end backdoor Roths. This article discusses the first version of the bill-that included provisions ending the technique; the second version-from the White House, that stripped those provisions from the bill; and the third version that added most of the Roth and IRA provisions back into the bill. Even after all of that activity, the outcome is not yet finally determined.
The views expressed here are those of Fred Reish. They should not be construed as investment advice or as the views of Hartford Funds or the employees of Hartford Funds. They are based on available information and are subject to change without notice. The information above is intended as general information and is not intended to provide, nor may it be construed as providing, tax, accounting or legal advice. As with all matters of a tax or legal nature, please consult with your tax or legal counsel for advice. This material and/or its contents are current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Fred Reish.
Fred Reish is an ERISA attorney whose practice focuses on fiduciary responsibility, retirement income, and plan operational issues. He has been recognized as one of the “legends” of the retirement industry by both PLANADVISER magazine and PLANSPONSOR magazine.
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