Kaaren Hall, CEO, uDirect IRA Services, LLC

Your Self-Directed account faced threats this year from the Build Back Better Act.  Now those threats are off the table, but for how long?


Starting September 13, 2021, the House began its deliberation of the BBBA.

Section 138312 of that Act was set to disallow assets in IRAs if the IRA holder had to prove a certain minimum level of assets, or if an income level was required. It would have disallowed assets if the investor had to have completed a minimum level of education or obtained a specific license or credential.  That would have eliminated private placement investing in IRAs.

Section 138314 said IRA owner cannot invest his or her IRA assets in a corporation, partnership, trust, or estate in which he or she has a 50 percent or greater interest.  This provision would have put an end to the IRA-Owned LLC (also known as the “Checkbook IRA”).

These two sections were removed before the bill was approved by House, which passed their version of the Bill November 24, 2021.


The Senate Finance Committee released the text of its version of the Build Back Better Act.  The text is linked here and a short press release is linked here.

In the Senate, the existential threats to IRAs were not added back in.

While in the hands of the Senate, the BBBA could have prohibited the Roth conversion of after-tax amounts in an IRA or plan, effective starting in 2022, which would prohibit “backdoor” Roth IRAs and “mega Roth 401(k)” contributions.  Additionally, the Senate sought to put a cap on savings for IRAs and Defined Contribution plans for certain high-income individuals.

December 20th, 2021 Sen. Joe Manchin (D-WV) issued a detailed press statement explaining his concerns with the BBBA. As a result, he officially pulled the plug on the Act for 2021.


The Act cannot become law without Sen. Manchin’s support.  It is too early to tell if some reduced version could be approved at some point in 2022.

Remember to make your voice heard. Contact your elected officials in the United States House of Representatives and Senate.  Visit them, call them, send an email or a letter or even a fax.  Tell your story!!  Let your Representatives and Senators know your views on how retirement accounts should be regulated.


Go to: https://www.house.gov/representatives/find-your-representative

Go to: https://www.senate.gov/senators/senators-contact.htm