But if you get the dividends in an IRA and redeem them in 2003, they will be taxed as ordinary income, for most Fools at 25% or higher.But if you redeem them in 2023, then you have 20 years of tax-deferred growth. Qualified distributions from Roth IRAs are ALWAYS tax-free. You make a great point regarding recent changes in tax law. But remember Congress can change those laws again. that awful provision, namely the "reqired minimum distribution".-Roth's do not have RMDs. RMDs are a negative but contributions have decades of tax deferral AND avoidance. You should look at the positive side as well as the negative.IRAs are still essential tools to prepare for retirement particularly since the contribution limits increase over the next few years.buzman
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