Build Back Better Act – Other Proposed Changes

Last week I wrote an article that dove into what the Build Back Better Act could mean for those currently using the Backdoor Roth IRA strategy. While that is a significant change that could be on the horizon, it is only one of many currently proposed in the several hundred-page plan. Shown below is a list of other items proposed in the Build Back Better Act:

• Increased income taxes and payroll taxes on certain taxpayers with high incomes ($400k+)
• Capping the tax benefit of itemized deductions for those earning $400k+
• Increased capital gains rates for high income earners
• Raise corporate tax rates and implement a 15% corporate minimum tax
• Cut the estate/gift/GST exemption in half
• Limit the ability for taxpayers in high tax brackets to do traditional Roth conversions in the future

While none of these changes have been put into law yet, it is our job to prepare for how proposed tax code changes could impact our clients. If you are curious as to how any of the above provisions might impact your financial situation, don’t hesitate to schedule a call.