While some investors won’t qualify for IRA contribution deductions, they can consider non-deductible IRA contributions, which allow some investors to qualify to convert their after-tax deposit to a Roth IRA, or a “backdoor” IRA, bypassing IRS income limits.
House Democrats have proposed cracking down on the strategy, regardless of income level, as part of their Build Back Better funding. But it is unclear if lawmakers will do away with the measure.