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Proposed tax rule may expand Roth access with up to $2,500 break

The proposal would allow families to use a “discount Roth conversion,” potentially providing a $2,500 tax benefit under certain conditions.

Reported · Written up by our desk · Fund Industry

A proposed rule discussed by MarketWatch would create a new way for families to contribute to retirement accounts using what it calls a “discount Roth conversion.”

Under the approach, parents would be able to put money into “Trump accounts,” with the potential to receive a $2,500 tax break, depending on eligibility and how the conversion is carried out.

MarketWatch said the rule would be aimed at letting families access the Roth structure in a manner that offers the discount feature, rather than relying only on standard contribution and conversion mechanics.

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