The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/theres-another-risk-with-roths-thats-not-often-16099961.aspx

Subject:  Re: IRA allocation questions Date:  11/13/2001  2:17 AM
Author:  ptheland Number:  32486 of 76079

There's another risk with Roths that's not often mentioned, but I believe to be very real. Roth withdrawls will be tax free only as long as Congress doesn't change its mind. How long were Social Security benefits tax free? Then Congress finds they need to raise revenue and finds a target in this formerly tax-free income source. Then they get hit a second time (raising the max amount taxable from 50% to 85%). Even the latest tax cuts didn't consider reducing the tax on social security.

In 15-20 years, with baby boomers in full retirement mode and social security straining to meet it's promises, all that tax free Roth money is going to present a pretty tempting target.

--Peter
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us