The Roth IRA Trick Congress Is Planning to Take Away

Tax reform efforts have moved at full speed in the past two months, and Congress has now reached agreement on a final tax reform proposal for members of both the House and Senate to vote on in the coming week. Several provisions are intended to give taxpayers more money through lower rates and enhanced deductions. But to pay for those provisions, lawmakers also took away some tax breaks that many taxpayers have used for years.

Roth IRAs are one of the most valuable tax-deferred vehicles to help you with your retirement savings, allowing for tax-free growth of after-tax savings throughout your career and beyond. Anyone with traditional IRA retirement assets can put assets into a Roth IRA through what's known as a Roth conversion. Roth conversions are still allowed under the tax reform proposal, but one valuable benefit that conversions used to offer will disappear if the measure becomes law.

Image source: Getty Images.

Source: Fool.com