THE REVERE ADVOCATE – FRIDAY, MAY 27, 2022 Page 17 BACKDOOR ROTH IRA’S W hen the House Ways and Means Committee in May of 2021 passed Secure 2.0, the Securing a Strong Retirement Act, it appeared that this bill would easily pass the United States Senate and the House of Representatives. It the bill were to have passed, that would have been the end of the Backdoor Roth IRA. A backdoor Roth IRA is when high income earners, who otherwise are not able to contribute to a Roth IRA, instead contribute to a non-deductible Traditional IRA. Subsequently, he or she will then convert the non-deductible Traditional IRA into a Roth IRA. At the time of conversion, the only income taxes to be paid would be if there were earnings in the Traditional IRA account prior to the conversion. Only the earnings would be taxed. The Roth IRA owner does not have to take out any required minimum distributions upon reaching the age of 72. No income taxes will have to be paid on future earnings so long as the Roth IRA account has been established for at least fi ve years. If you are single, for calendar year 2022, your ability to contribute to a Roth IRA is phased out completely once your modifi ed adjusted gross income reaches $144,000. For a married person fi ling jointly, the income fi gure for the phase out is $214,000. Secure 1.0 did away with the stretch IRA, which allowed MBTA Launches Small Business Enterprise Program BOSTON – The MBTA has offi cially launched its Small Business Enterprise (SBE) Program for construction, an effort to promote, create, and sustain capital programs construction business opportunities at the MBTA for small businesses as well as stimulate the Massachusetts economy by providing sustained revenue opportunities to non-spouse benefi ciaries of IRA’s to “stretch” the required minimum distributions over his or her life expectancy. Under current law, the IRA account must be withdrawn within a ten- year period. For certain Trust benefi ciaries, the IRA account must be taken over a fi ve-year period. Many beneficiaries must also begin withdrawing monies in the benefi ciary IRA account starting in year one and then in each of the next nine years. With Roth IRA’s, benefi ciaries are not required to withdraw monies in years one through nine. They must, however, withdraw the entire account out by the end of the tenth year. However, that means that the Roth IRA benefi ciary has the luxury of having that account grow tax free for the entire ten- year period. Even if Congress does away with the backdoor Roth IRA, the legislation would only affect future conversions. So, for now, it seems to still be a great planning idea. Joseph D. Cataldo is an Estate Planning/Elder Law Attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a Master’s Degree in Taxation. Wildlife Control and Tree Service 24-Hour Service local small businesses. “We’re very excited to launch the SBE Program, which is one new feature in our growing portfolio of DEI best practices and expands upon our commitment to diversity and equity through creative business opportunities,” said MBTA General Manager Steve Poftak. “Following FTA best practices, our Capital Programs and ODCR SBE team will identify small contracting opportunities for pre-qualifi ed small businesses to bid on, ensuring an equitable bidding process.” The SBE Program is a joint initiative of the MBTA’s Offi ce of Diversity and Civil Rights (ODCR) Government Compliance Unit and the MBTA’s Capital Programs departments. Following best practices used for federal transportation programs, the SBE Program identifies small contracting opportunities, typically less than $3 million, with enough qualifi ed SBEs to ensure a competitive bid environment. Pre-qualifi ed SBEs are eligible to bid on these selected contracts, creating a level playing fi eld for small businesses. Participating SBEs will also be trained on how to do business with the T. All SBE participants are required to be certifi ed by the Federal Small Business Administration and pre-qualifi ed with the MBTA. Interested SBEs can register with the MBTA online and contact the SBE Program via email at sbe@mbta.com with any questions. Information sessions for interested small businesses will be held virtually: • Thursday, May 26, 2022 at 4 PM • Wednesday, June 1, 2022 at 10 AM • Tuesday, June 7, 2022 at 12 PM • Tuesday, July 12, 2022 at 8 AM Once pre-qualifi ed as an SBE with the MBTA, a business benefi ts from the following: • Opportunities to be a prime vendor on contracts; • Access to up to $25 million in contracting opportunities a year; and • Invitations to business forums, mentorship programs, and networking events. The SBE Program aims to procure fi ve projects in FY23 as a Proof of Concept. After the fi rst year, the MBTA will evaluate the program and take steps to both strengthen and grow it in future fi scal years. For more information, visit mbta.com/SBE, or connect with the T on Twitter @MBTA, Facebook /TheMBTA, or Instagram @theMBTA. for the 6:00 p.m. – 7:30 p.m. Events | Mass.gov ma.us. . . Fully Insured 781-269-0914 ����������������������� ������������� ������������������������������������ �������������
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