Regulatory Updates

Build Back Better Bill Passes House, Moves to Senate

The House of Representatives passed the $1.9 trillion Build Back Better bill in a 220-213 near party line vote. The House-passed version of the bill contains several IRA provisions, including

  • limiting contributions and requiring additional minimum distributions for high-income taxpayers with aggregate retirement account balances over $10 million, beginning in 2029,
  • closing the “back-door” Roth IRA loophole by eliminating conversions of after-tax IRA and employer-sponsored retirement plan contributions for all taxpayers, beginning in 2022, and
  • eliminating conversions of pretax IRA and employer-sponsored retirement plan contributions for high-income taxpayers, beginning in 2032.

Additionally, the bill provides for four weeks of federally-funded, paid family and sick leave for all workers. Currently, it appears that this provision may be removed in the Senate version of the bill.

The bill now heads to an evenly divided Senate where it is anticipated that amendments will be made. All 50 members of the Senate Democratic caucus must agree to support the bill in order for it to pass under the budget reconciliation process, as opposed to the 60 votes necessary for other legislation.