A short YouTube video by Craig Wear, CFP® addressing a provision in President Biden's budget proposal that would eliminate backdoor Roth IRAs for very high-income earners. Wear emphasizes the proposal is not law yet and advises high-income viewers with large IRA/401(k) balances to consider accelerated Roth conversions of existing retirement accounts instead of relying on backdoor Roth contributions.
Hey. Well, by now you probably have seen the news that President Biden's budget proposal has gotten a provision that would totally eliminate backdoor Roths by the highest of income earners. And I'm just going to suggest to you, while that is true, a couple things. First of all, it has not passed Congress yet, so it isn't a. It isn't law. But the second is, if you're a high income earner, you probably have got a large IRA or a large 401k balance. And if that's true, if that's the case, you probably don't need to be doing backdoor Roths anyway. Your money's probably better spent by doing massive conversions of your existing account. So check out the information in the link below. Go out. Check out more information about why you should be doing Roth conversions in an accelerated way instead of backdoor Roths.
