Backdoor Roth Conversions- No More?

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GassYous said:
Yeah you wish it was that easy

As soon as I brought my first one home some bitch next door was yelling at me to stop the crying baby. Have you ever had a crazy person sit in their car with their headlights on watching you from their driveway through the window while your baby is completely inconsolable until daylight?
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Sounds like the problem was the neighbor, not the baby.
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We may not be taking substantiative action on climate change, our democracy is going to be gerrymandered out of existence, and our healthcare system will remain broken and corrupt but at least I can sink a couple grand a month into a mega roth
 
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WP
 
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shepardsun said:
We may not be taking substantiative action on climate change, our democracy is going to be gerrymandered out of existence, and our healthcare system will remain broken and corrupt but at least I can sink a couple grand a month into a mega roth
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What does one have to do with another?

It’s about 3k a month, by the way, depending on your situation. Those that are investing an extra 3k a month using this vehicle for retirement are paying PLENTY of taxes, btw. The ultra wealthy have a lot of better ways to avoid taxes.
 
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shepardsun said:
We may not be taking substantiative action on climate change, our democracy is going to be gerrymandered out of existence, and our healthcare system will remain broken and corrupt but at least I can sink a couple grand a month into a mega roth
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If a mega roth is so offensive to you, don't contribute.

Physicians are working stiffs. Yes, we technically make more than the average person but most are not wealthy.

The typical physical has to fund their own retirement, pay for their kids college with no hope of financial aid, and pay through the nose in taxes. If we can get ahead with a couple of favorable rules, who cares?
 
shepardsun said:
We may not be taking substantiative action on climate change, our democracy is going to be gerrymandered out of existence, and our healthcare system will remain broken and corrupt but at least I can sink a couple grand a month into a mega roth
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Dude, if you think those things aren't happening because there's some minimally favorable tax treatment for individually funded retirement savings you're looking at the world from some kind of interdimensional perspective distortion vortex. :)

The "loss" of federal revenue due to the tax advantages of individual retirement accounts comes to about $20B per year as of 2021. Considering the vast majority of that "cost" benefits the middle and working classes, and the impact personal retirement savings have on quality of life and health for old people, my god, I can't think of a worse place to pinch pennies.

Progressives ought to be aggressively expanding IRA tax benefits and increasing contribution limits.
 
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anonperson said:
If a mega roth is so offensive to you, don't contribute.
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pgg said:
Dude, if you think those things aren't happening because there's some minimally favorable tax treatment for individually funded retirement savings you're looking at the world from some kind of interdimensional perspective distortion vortex. :)
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My comment was thoroughly aimed tongue in cheek more at people who were primarily worried about that provision being taken out ahead of the viability of some of the more existential, in my opinion, policy proposals. I think mega roths are great and look forward to watching mine grow as the world burns around me
 
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shepardsun said:
My comment was thoroughly aimed tongue in cheek more at people who were primarily worried about that provision being taken out ahead of the viability of some of the more existential, in my opinion, policy proposals. I think mega roths are great and look forward to watching mine grow as the world burns around me
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This has happened before
Unknown-1.jpeg
 
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dr doze said:
This has happened beforeView attachment 345330
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Definitely unlikely to happen in our lifetimes. Or our children’s. Or theirs. If our style of living is in fact changing the planet, then that’s what’s gonna happen. There is ZERO political will to actually enact and enforce significant change. Everyone concerned about climate change until they actually have to give up some convenience of modern life. (Just ask those 400 guys who flew private jets into the climate conference.). The dinosaurs couldn’t stop the comet, we can’t stop this….
 
dannyboy1 said:
Definitely unlikely to happen in our lifetimes. Or our children’s. Or theirs. If our style of living is in fact changing the planet, then that’s what’s gonna happen. There is ZERO political will to actually enact and enforce significant change. Everyone concerned about climate change until they actually have to give up some convenience of modern life. (Just ask those 400 guys who flew private jets into the climate conference.). The dinosaurs couldn’t stop the comet, we can’t stop this….
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Exactly. Even if the USA made sweeping, economically-crippling changes then countries like China are going to do nothing and gladly continue screwing the planet.

So I’m going to concentrate on my own 401k so that I can buy a mountain property for my grandkids when the coasts are flooded.
 
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shepardsun said:
My comment was thoroughly aimed tongue in cheek more at people who were primarily worried about that provision being taken out ahead of the viability of some of the more existential, in my opinion, policy proposals. I think mega roths are great and look forward to watching mine grow as the world burns around me
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Imagine thinking the government should, or can, fix climate change lol.
 
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I believe in a lot of what is proposed in these spending bills and laugh loudly at anybody who complains about "muh deficit" when we write blank checks to the Pentagon in perpetuity for seemingly negative returns on investment. Let's talk about fiscal responsibility after we slash their budget by 75%.

But I am not under any illusions that these changes to the retirement accounts are in good faith. Otherwise why did they take out the provisions that would have banned holding unregistered securities including private equity in IRAs? That's what @$$hole Thiel used to balloon his Roth to $5 billion. Not a $50k a year mega backdoor conversion. Rich and powerful get to play by a different set of rules while we are kneecapped.
 
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shepardsun said:
I believe in a lot of what is proposed in these spending bills and laugh loudly at anybody who complains about "muh deficit" when we write blank checks to the Pentagon in perpetuity for seemingly negative returns on investment. Let's talk about fiscal responsibility after we slash their budget by 75%.

But I am not under any illusions that these changes to the retirement accounts are in good faith. Otherwise why did they take out the provisions that would have banned holding unregistered securities including private equity in IRAs? That's what @$$hole Thiel used to balloon his Roth to $5 billion. Not a $50k a year mega backdoor conversion. Rich and powerful get to play by a different set of rules while we are kneecapped.
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Exactly. Both parties serve the ultra-wealthy. The dems just pretend they are going to do something about it, while continuing to stick-it mainly to the most productive in society.

We have 3 classes now:
- the ultra rich who own the politicians through armies of lobbyists and lawyers and basically can steal money hand over fist.
- the productive members of society who actually work for a living and work hard to produce something of value. Their income is increasingly under assault through taxes, increasing bloated programs etc.
- the “poor” who increasingly rely on these programs and are dis-incentivized to work while being told they are victims.
 
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I like the working spouse as an insurance policy against getting **** canned or underemployment in my field
 
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for anybody worried about potential loss of backdoor Roth in 2022, since Joe Manchin killed the bill in the senate it is almost certainly going to survive another year.
 
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Mman said:
for anybody worried about potential loss of backdoor Roth in 2022, since Joe Manchin killed the bill in the senate it is almost certainly going to survive another year.
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This BBB bill is totally dead or it will be revived in a modified version?
 
Does this mean my portfolio will stop seeing red?
 
Mman said:
for anybody worried about potential loss of backdoor Roth in 2022, since Joe Manchin killed the bill in the senate it is almost certainly going to survive another year.
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I'm not confident enough to call the bill dead, but I'm fairly certain it will not get done before 1/1. That's the day I always start the back door Roth hoopla and I doubt they will try to put anything retroactive
 
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sethco said:
I'm not confident enough to call the bill dead, but I'm fairly certain it will not get done before 1/1. That's the day I always start the back door Roth hoopla and I doubt they will try to put anything retroactive
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My thoughts exactly. I'm going ahead as planned.
 
dr doze said:
Damn. The market hasn't been at these levels for....weeks.
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As a new investor (~5 months), these last few weeks are a lifetime. Imagine buying into almost every stock at an all-time high and seeing all of them drop as you hear about how great the stock market was over the past 10 years!
 
RadOncDoc21 said:
As a new investor (~5 months), these last few weeks are a lifetime. Imagine buying into almost every stock at an all-time high and seeing all of them drop as you hear about how great the stock market was over the past 10 years!
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The best thing one can tell you is keep buying. This is why one does periodic investing (Not to be confused with dollar cost averaging)
Look at the example below. Even though the starting and finishing stock value didn't change, you still would have done well
1640086575256.gif
 
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sethco said:
The best thing one can tell you is keep buying. This is why one does periodic investing (a form of dollar cost averaging)
Look at the example below. Even though the starting and finishing stock value didn't change, you still would have done well
View attachment 347064
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Oh definitely, I’ve been buying all the stocks I normally felt were too expensive at the time. Just wish I could have got in below some of the recent peaks.
 
sethco said:
The best thing one can tell you is keep buying. This is why one does periodic investing (Not to be confused with dollar cost averaging)
Look at the example below. Even though the starting and finishing stock value didn't change, you still would have done well
View attachment 347064
Click to expand...


Yep DCA/btfd….it doesn’t matter. Buy, don’t sell. Avoid margin/leverage. Your job basically guarantees you will become a multimillionaire.
 
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RadOncDoc21 said:
As a new investor (~5 months), these last few weeks are a lifetime. Imagine buying into almost every stock at an all-time high and seeing all of them drop as you hear about how great the stock market was over the past 10 years!
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As a new and presumably young investor, you should be grateful that prices have abated. Young investors should be praying hard for a grueling decade long bear market. This is where you make your money. Of course it doesn't feel good when it is happening.
 
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narcotics999 said:
This BBB bill is totally dead or it will be revived in a modified version?
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Current version is totally dead in the Senate. That means they have to start over with a new version for the House and the Senate which generally takes weeks/months. In other words it probably isn't coming up for vote until February/March at the earliest. And all tax experts I can find suggest it would be almost impossible to try to make backdoor Roth illegal in 2022 at that point because you'd be applying it retroactively to what was legal in January so even if they wanted to include it on new version it would almost have to wait until 2023.
 
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dr doze said:
As a new and presumably young investor, you should be grateful that prices have abated. Young investors should be praying hard for a grueling decade long bear market. This is where you make your money. Of course it doesn't feel good when it is happening.
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It's just annoying when you buy and then a few days later it's a few bucks cheaper
 
GassYous said:
It's just annoying when you buy and then a few days later it's a few bucks cheaper
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Emotion is the biggest hindrance to investing.

The best thing to do is buy and then don't look at the price for a long time.
 
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Capital gains tax SHOULD be equal to income tax.

Why should someone that makes a living by investing pay less for their income tax? That makes no sense.

Corporations shouldn’t be taxed. Tax income of earners.
 
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coffeebythelake said:
So any update on changes to Roth?
come January 1st, should we still continue to do backdoor Roth?
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My accountant told me there is minimal downside to doing it and to go ahead. Worst case is they do eliminate it for 2022 and then you’d owe taxes on any gains but as others have said, it seems unlikely they’d pass it later on in the year to be effective for 2022.
 
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fitaxguy.com

2022 Backdoor Roth IRA

The Backdoor Roth IRA lives! The proposal to repeal the Backdoor Roth IRA as of January 1, 2022 will not be enacted in 2021, as it is now abundantly clear that the Build Back Better legislative pro…
fitaxguy.com fitaxguy.com

I still plan to wait a bit, but agree odds very strongly favor it being allowed for 2022
 
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RadOncDoc21 said:
As a new investor (~5 months), these last few weeks are a lifetime. Imagine buying into almost every stock at an all-time high and seeing all of them drop as you hear about how great the stock market was over the past 10 years!
Click to expand...

What if You Only Invested at Market Peaks? - A Wealth of Common Sense

What happens when you only invest at the peaks of the market by being the world's worst market timer.
awealthofcommonsense.com awealthofcommonsense.com

It's a nice read. Hypothetical on the worst market timer and how he still ended up with a million dollars.

It's a marathon and it can be frustrating to see the slow and steady rise while others are zooming along.

Stay the course.
 
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epidural man said:
Capital gains tax SHOULD be equal to income tax.

Why should someone that makes a living by investing pay less for their income tax? That makes no sense.

Corporations shouldn’t be taxed. Tax income of earners.
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Because Nancy Pelosi's husband is betting big on options!
 
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