House Democrats Target Biggest Retirement Accounts Once Again – The November 3 version of the Build Back Better Act has resurrected retirement law changes that will curb high balance accounts and popular wealth building strategies including backdoor Roth IRAs and aftertax 401(k) contributions.
There’s also a new $2.5 million retirement account reporting mandate, presumably to help the Internal Revenue Service with compliance. The changes are generally progressive and will hit the wealthiest taxpayers, in order to pay for the social policy and climate change bill that currently comes at a 10-year cost of $1.85 billion.
The legislation is in flux, but the fact that these provisions were in, then out, then in again, suggests that anything could happen. For now, two of the provisions are set to be effective at the start of the new year, giving taxpayers a small window to do year-end tax planning. “For back-door Roth conversions, it may be your last chance,” says Sarah Brenner, director of education at Ed Slott & Co.
The new rules would apply broadly to workplace retirement accounts like 401(k)s and 403(b)s as well as Individual Retirement Accounts (IRAs) and deferred compensation plans.
Over in Singapore, we have our Central Provident Fund (CPF) as the main anchor of Singaporeans retirement – how should you position yourself if you are retiring in the distant future decades to come?
should you position yourself to accommodate your desired lifestyle, for retirement?
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You can read more about House Democrats Target Biggest Retirement Accounts Once Again – over at https://www.forbes.com/sites/ashleaebeling/2021/11/04/house-democrats-once-again-target-biggest-retirement-accounts/?sh=63fc6d77731c
