Build Back Better Provisions Resurface in White House Budget Proposal
President Biden’s fiscal year 2024 budget includes proposed retirement account restrictions for certain taxpayers — similar to those included in the Build Back Better Act passed by the House in 2021 — but left by the wayside enroute to the passage of the Inflation Reduction Act of 2022. A Department of Treasury explanation of the Administration’s revenue proposals provide details.
- disallowing contributions and requiring additional minimum distributions for high-income taxpayers with aggregate retirement account balances over $10 million. High income taxpayers include
- Single filers with modified adjusted gross income (MAGI) over $400,000,
- Joint filers with MAGI over $450,000, or
- Heads of households with MAGI over $425,000
- eliminating conversions of pretax IRA and employer-sponsored retirement plan contributions for high-income taxpayers
- closing the “backdoor” Roth loophole by eliminating conversions of after-tax IRA and employer plan contributions for all taxpayers
It is unknown whether Congress will consider any of these proposals as it works to put together an appropriations bill to address the budget.