*Action Needed by Year End* – Possibly Last Chance for Back-Door ROTH IRAs

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On November 19, 2021, the U.S. House of Representatives passed the Build Back Better Act and sent it to the Senate. Included in the current proposed framework is the prohibition of “Back-Door” ROTH conversions, to take effect after December 31, 2021. The Senate Finance Committee released its current working version of the Bill on December 11, 2021, which left unaltered the provision to eliminate Back-Door ROTH conversions. This bill now remains with the Senate for further debate, revision, anticipated approval, and then a return to the House for reconciliation with the Senate Bill before it can be voted on by the full House and Senate and sent to the President for signature. This may provide a small window, through the end of the year, for you to hedge your bet on this procedure.

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Updated: Dec 14, 2021

About the author
Diane DeCesare of Armanino LLP is a member of XPX Philadelphia

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