A part of Build Back Better are congressional proposals that will limit how some can invest in their Roth IRA. Troy Sharpe of Oak Harvest Financial Group has an example. "The ability to put shares of a newly founded LLC or corporation that you create inside your Roth with hopes it will one day grown into a high higher value is being taken away." Sharpe says not to worry too much until you hear all of the details. "The majority of this bill will not affect more Americans - BUT - if have more than $10 Million inside your retirement accounts, you will be forced to take a 50% distribution of the excess of the $10 Million."
Financial Expert Derrick Kinney says it could hurt some of them. "If a business holder uses a Roth IRA as their primary savings vehicle, this could impact them if they are VERY successful. For most small businesses, though, this will probably not have much impact on them." Kinney says the current proposal may make it possible for some married couples to pay more taxes than if they were single, but to remember, this is a first draft and not a final bill.
Listen to Troy Sharpe's Retirement Income Show Sundays on KTRH.
photo: GettyImages
Congressional Proposal of changes to Roth IRAPhoto: Getty Images