The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Hedging Bets Away From Roth Investing Date:  1/5/2008  10:50 AM
Author:  TheXRayStyle Number:  97639 of 123001

Greetings all,

With the recent news of Mike Huckabee winning the Iowa Republican Primary, it may behoove us to consider contributing to a Traditional IRA rather than a Roth IRA in the future. The reason I say this is that Huckabee expressly supports the "FairTax" plan ( which would basically eliminate income/payroll taxes and institute a universal 23% sales tax. Such a consumption tax would be very bad for those like me who have their tax-advantaged retirement savings strictly in a Roth, as income taxes were already paid and we would still be paying the consumption tax after we withdraw money from our roth. Those with pre-tax money