Big Change May Be Coming To Roth IRA

Big Change May Be Coming To Roth IRA
Photo by Nick Fewings / Unsplash

Here's what you need to know.


The federal spending bill that is currently in congress may have some big changes to Roth IRA. These changes will effect millions of retirees and soon to be retired.

The bill will repeal Roth conversions in individual retirement accounts for people making more than $400,000 a year. It would also prevent savers from using the “mega-backdoor Roth” strategy, regardless of income level.

This plan is part of efforts to tax those making over $400,000 to help pay for education, climate, paid-leave, child-care and other measures. Although it is not signed into law, this change will effect millions across the U.S