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Congressional Democrats Want to End Lucrative Retirement Loophole

Democrats are proposing a number of tax reforms related to retirement accounts, including the elimination of backdoor Roth IRA conversions for the wealthiest Americans.Congressional Democrats want to slam shut a tax loophole known as the “backdoor” Roth IRA. In one of several proposed changes that target the retirement accounts of wealthy Americans, Democrats on the House Ways and Means Committee want to prohibit people who make more than $400,000 per year from converting pre-tax retirement savings accounts into a Roth IRA. The proposed reforms are part of the Democratic push to raise taxes on the wealthiest to fund a $3.5 trillion spending plan.A financial advisor can help you make sense of potential law changes in Washington and how they might affect you. Find an advisor now. “Backdoor” Roth IRA Conversions – Definition and Elimination ProposalsDemocrats are proposing a number of tax reforms related to retirement accounts, including the elimination of backdoor Roth IRA conversions for the wealthiest Americans.Under current tax law, individuals making more $140,000 per year are barred from contributing to a Roth IRA, where retirement savings grow tax-free. However, since 2010, workers who e …

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