🚨 Heads Up, Tech Community! Major Changes to Roth IRAs on the Table 🚨 Fellow tech professionals, it’s crucial to be aware of the significant shifts proposed in President Biden’s latest tax reform, particularly regarding Roth IRA strategies that many of us rely on for tax-efficient retirement planning. Here’s what’s being targeted: 1. Ending Backdoor Roth Contributions: The new proposal seeks to eliminate the Backdoor Roth IRA strategy for individuals earning over $400K. This has been a key method for high earners to sidestep income limits on Roth contributions. 2. Shutting Down the Mega Backdoor Roth: Similarly, the Mega Backdoor Roth, which allows large after-tax contributions to 401(k)s to be rolled over into Roths, is also on the chopping block for those in the same income bracket. 3. Tax Increases for High Earners: Alongside these changes, there's also a proposal to increase the marginal tax rate for high earners, which could affect your take-home pay and investment strategies. These proposals could reshape how many of us in the tech sector manage our finances and plan for the future. Understanding the implications of our votes and staying informed on these policy changes is more important than ever. TC: 410K YoE: 12 Years
Most of you on this app voted for this… BRAVISSIMI!!!
Good
Wtf
Yeah I saw this too. They can’t allow us to get any richer. We have to be down there with the poors like the rest of them. I believe this is AGI right? I can use my deferred compensation plan to get under the 400k mark and then give the middle finger to everyone.
Megabackdoor Roth will not be banned and everyone knows it … it’s only to get some traction among those useless gender theory graduates
It’s on the proposal and I don’t like to gamble with my future
But messing with Megabackddor Roth will invite wrath of many rich and upper middle class whites which neither of the parties can afford
Glad Biden is closing tax loopholes.
Do you think this affects “Wealthy” people? Almost everyone using this are “Employees,” not business owners, and definitely not Sundar, Zuck, Biden or Trump. This is one of the very few tools that are left for us employees to be able to escape the rat race, and you’re ok with it, madness.
you’re wealthy. you might have a spending problem, but you’re wealthy. you’re well above the median household income in your region
Can't keep kicking the can down the road for the next generation.
90% America reads this and is happy since biden gives the perception he is "taxing the rich". Us techies know that our TC in VHCOL isn't "rich", but the numbers seems huge to middle america That's what we get for voting the socialists
It's alright. Biden isn't winning anyway.
Vote for Trump
Dude Trump killed the SALT deduction. If you earn like one mil you could get ahead with his tax act, otherwise tons of people in CA and NY ended up paying more tax. Being upset that an obscure backdoor is being phased out is dumb, tax law should be simple and fair.
Thank you OP for the heads up!