[Backdoor Roth IRA - Forbes: IRS Unlocks The 'Door' For High-Income Savers]

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JamesSFO
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Re: Backdoor Roth IRA article

Post by JamesSFO » Fri Jul 13, 2018 9:17 pm

The main point of interest I saw, someone from the IRS (Donald Kieffer Jr., a tax law specialist with the IRS’s Tax-Exempt and Government Entities Division) saying:
“I think the IRS’s only caution would be whenever we see words like ‘back door’ or ‘workaround’ or other step transactions that are putatively enabling a way to get around limits - especially statutory contribution limits - you generally find the IRS is not happy and prepared to challenge those,” Kieffer said. “But in this one [backdoor Roth] that we’re talking about, it’s allowed under the law.” (emphasis added)

student
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Re: Backdoor Roth IRA article

Post by student » Sat Jul 14, 2018 5:11 am

JamesSFO wrote:
Fri Jul 13, 2018 9:17 pm
The main point of interest I saw, someone from the IRS (Donald Kieffer Jr., a tax law specialist with the IRS’s Tax-Exempt and Government Entities Division) saying:
“I think the IRS’s only caution would be whenever we see words like ‘back door’ or ‘workaround’ or other step transactions that are putatively enabling a way to get around limits - especially statutory contribution limits - you generally find the IRS is not happy and prepared to challenge those,” Kieffer said. “But in this one [backdoor Roth] that we’re talking about, it’s allowed under the law.” (emphasis added)
Thank you. This paragraph was what I was trying to refer to.

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David Jay
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Re: Backdoor Roth IRA article

Post by David Jay » Sat Jul 14, 2018 9:31 am

Yes, there is specific language about after-tax tIRA to Roth conversions in the 2017 TCJA.
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inbox788
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Re: Backdoor Roth IRA article

Post by inbox788 » Sat Jul 14, 2018 10:30 am

David Jay wrote:
Sat Jul 14, 2018 9:31 am
Yes, there is specific language about after-tax tIRA to Roth conversions in the 2017 TCJA.
I'm looking for the quote by Donald Kieffer Jr., but haven't found any audio or transcript of the discussion. If anyone comes across it, please link it here. Also, this article has been mentioned, but I'm not finding the exact wording. IRS representatives and congressmen have been known for making unclear or incorrect statements or been misquoted. I don't think that's happening here, but I want to hear it directly from the horse. And maybe they can make it easier for everyone involved and we can stop this two step dance.

Congress Blesses Roth IRAs For Everyone, Even The Well Paid
https://www.forbes.com/sites/ashleaebel ... 3ca0174715

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David Jay
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Re: [Backdoor Roth IRA - Forbes: IRS Unlocks The 'Door' For High-Income Savers]

Post by David Jay » Sat Jul 14, 2018 11:35 am

I read the specific language from the TCJA over at Kitce’s site. I am not prepared to research it at the moment, maybe another poster will do so. Maybe when I get home this evening if no one else provides a link first.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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Oicuryy
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Re: [Backdoor Roth IRA - Forbes: IRS Unlocks The 'Door' For High-Income Savers]

Post by Oicuryy » Sat Jul 14, 2018 9:48 pm

Footnote 269 on page 289 of Conference Report To Accompany H.R. 1 says:
Although an individual with AGI exceeding certain limits is not permitted to make a contribution directly to a Roth IRA, the individual can make a contribution to a traditional IRA and convert the traditional IRA to a Roth IRA.
Ron
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Compound
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Re: [Backdoor Roth IRA - Forbes: IRS Unlocks The 'Door' For High-Income Savers]

Post by Compound » Sat Jul 14, 2018 10:27 pm

Readers of this thread may want to consider a prior discussion of the implications of the TCJA on the Backdoor Roth:

viewtopic.php?f=10&t=238910&p=3736183&h ... r#p3736183

How authoritative is the IRS person who is referenced in the current thread?

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