With respect to the Build Back Better Act ("BBBA") recently passed by House of Representatives, I understand that "backdoor" Roth conversions will be prohibited after 12/31/2021 if BBBA is enacted.
I am trying to figure out what exactly is prohibited after 12/31/2021, if BBBA is enacted, and have the following questions:
Scenario 1: John is self-employed and has $50,000 of modified adjusted gross income for all applicable years. Neither John nor his spouse are covered by an employer retirement plan. John contributes $5,000 to a Traditional IRA on 03/31/2022. Is John prohibited from converting all or a portion of the Traditional IRA to a Roth IRA in:
• 2022?
• 2035?
Scenario 2: John is self-employed and has $1,000,000 of modified adjusted gross income for all applicable years. Neither John nor his spouse are covered by an employer retirement plan. John contributes $5,000 to a Traditional IRA on 03/31/2022. Is John prohibited from converting all or a portion of the Traditional IRA to a Roth IRA in:
• 2022?
• 2035?
Scenario 3: John is self-employed and has $1,000,000 of modified adjusted gross income for all applicable years. Although John is not covered by an employer retirement plan, John's spouse is covered by an employer retirement plan. John contributes $5,000 to a Traditional IRA on 03/31/2022. Is John prohibited from converting all or a portion of the Traditional IRA to a Roth IRA in:
• 2022?
• 2035?
Scenario 4: John has $1,000,000 of modified adjusted gross income for all applicable years and is employed by ABC, Inc. On 03/31/2022, John resigns from ABC, Inc. at a time when the value of his pre-tax ABC, Inc. 401(k) account has a value of $3,000,000. Is John prohibited from doing a qualified rollover of all or part of his ABC, Inc. 401(k) account to a Rollover IRA and then converting all or a portion of the Rollover IRA to a Roth IRA in:
• 2022?
• 2035?
Scenario 5: John has $1,000,000 of modified adjusted gross income for all applicable years and is employed by ABC, Inc. On 03/31/2022, John resigns from his then employer, ABC, Inc. at a time when the value of his pre-tax ABC, Inc. 401(k) account has a value of $3,000,000. Is John prohibited from doing a qualified rollover of all or part of his ABC, Inc. 401(k) account to a Rollover IRA and then converting all or a portion of the Rollover IRA to a Roth IRA in:
• 2022?
• 2035?
Scenario 6: John is hired by XYZ, Inc. on April 1, 2022. May XYZ, Inc. have a 401(k) plan that provides a Roth 401(k) option to John in both 2022 and 2035 if:
• John has $50,000 of modified adjusted gross income for all applicable years?
• John has $1,000,000 of modified adjusted gross income for all applicable years?
Thanks!