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Subject:  Re: no matching 401k vs. Roth IRA Date:  8/14/2003  12:21 PM
Author:  MadCapitalist Number:  36927 of 88775

They wouldn't get away with taxing a Roth IRA. It would be a political death sentence.

Back in the olden days when I started my TSA at Penn State, you could take out money and just pay the taxes on it. Two years later, there was a 10% penalty added to the price of withdrawal and I believe this was a Federal tax change. Remember that high income folks don't have Roths for the most part because they couldn't contribute or convert and they all vote.

The wealthy only make up a very small proportion of the votes in America. Roth IRA contributions begin phasing out at $95,000 for single filers and $160,000 for married couples. There aren't a heck of a lot of voters in these categories.
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