Nov. 3rd, 2021: The Proposed Band of the Backdoor Roth & Mega Backdoor Roth is Back–See the following for more Information: https://www.mysolo401k.net/back-again-backdoor-roth-and-mega-backdoor-roth-added-back-to-pending-reconciliation-bill-build-back-better-act-of-2021/
Update as of October 28, 2021: Great news–The provisions found in the pending Build Better Act bill have been defeated.
See the following for more information: https://www.mysolo401k.net/proposed-ban-on-ira-accredited-investments-has-been-removed-from-reconciliation-bill-build-back-better-act-of-2021/
High investment returns is a concern for some members of Congress, resulting in them proposing a bill that would limit IRAs from investing in investments such as private investments that have the potential to exponentially grow the retirement account holders IRA. According to an outline by the House Ways and Means Committee a proposed bill seeks to no longer allow IRAs to to be invested in private investments if the private investment sponsor requires the investor to be an accredited investor. While the proposed bill does not reference 401k plans, it is unclear if this bill, if it even passes, would apply to solo 401k plans. The passage of the proposed bill would require approval by both the house and the senate and the president’s signature.
If this rules does go into effect, under the proposed bill, it would go into effect starting on January 1, 2022 and it would allow the IRA owner to divest from the private investment over a two year period.
It is worth noting the proposed bill by the Ways and Means Committee is one of the first of many steps in passing a bill. As such, these proposed provisions could still be amended. What is more, the Senate Finance Committee will also have its own set of proposals, which will most likely not match the House’s version.
Would the Proposed Bill Apply to Solo 401k Private Investments QUESTION:
Does Proposed Legislation Apply to Multifamily Syndication QUESTION:
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