Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: mpell Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Future of Roth Date: 1/11/1999 1:58 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I've been doing very well in my new Roth. I've made excellent gains. I know the current laws suggest I will never have to pay tax on this money, and don't need to do the same recording for IRS on gains and losses.
My question is this: It seems some people feel that down the line the government may change the laws vis a vis the ROth. IF this should happen, what do people think is the worst case scenario? Let's say in 10 or 20 years the laws change. Does it seem likely that those of us with significant gains at that point will have to go back and figure out cost basis of all shares held, gains and losses on all sales, etc., and pay tax of all money withdrawn?
Or is it more likely that there will be some kind of grandfather clause making any gains made under current law tax free but future gains from point of time of new law perhaps would be taxable??? It seems to me it would be quite unfair to have people make nvestment DECISIONS based on a ruling and then penalize them later... but who knows!!!
thanks in advance
Mpell
Print the post Back To Top
Author: RECCLES4 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8249 of 121219
Subject: Re: Future of Roth Date: 1/11/1999 3:31 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hey, they already did. Remeber the retro tax hike of 92?? My advise, based on our government, is to keep very accurate and detailed records of everything you do. And keep that information on a recuring basis year after year. (you should probably keep actual year to year records for 7 years. But seing how everything can go on a disc or cd why not keep them forever) Just be sure to cover as many bases you can. It is very difficult to predict what our government will do except to say, sooner or later, anything that generates significant gains for the citizen will be taxed.

rec

Print the post Back To Top
Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8263 of 121219
Subject: Re: Future of Roth Date: 1/11/1999 8:26 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
[[I've been doing very well in my new Roth. I've made excellent gains. I know the
current laws suggest I will never have to pay tax on this money, and don't need
to do the same recording for IRS on gains and losses.]]

The law is a bit stronger than a mere suggestion...

[[My question is this: It seems some people feel that down the line the government
may change the laws vis a vis the ROth. IF this should happen, what do people
think is the worst case scenario? Let's say in 10 or 20 years the laws change.
Does it seem likely that those of us with significant gains at that point will have to
go back and figure out cost basis of all shares held, gains and losses on all sales,
etc., and pay tax of all money withdrawn?
Or is it more likely that there will be some kind of grandfather clause making any
gains made under current law tax free but future gains from point of time of new
law perhaps would be taxable???]]

My crystal ball is hazy to me on this point. But I would doubt that any changes would require a person to go back and track various stock transactions that may have taken place 5, 10, 15, or even more years back.

TMF Taxes
Roy

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement