No. of Recommendations: 0
LOL!!!! You brought a picture to my mind of Clinton, Gephart, et. al. sitting in a smokey room, plotting to do away with the income tax. Not, I think, a likely possibility in this space-time continuum.

Your concern about them changing the rules, however, is a real possibility. Putting new money into a Roth IRA is a no-brainer---it's the best of the currently available alternatives. It's the conversion of old IRA into a Roth that's dicey.

A future Congress may make ROTH's effectively taxable, even though without touching the explicit rules. They could, for example, count a ROTH distribution as income when figuring a phase-out of a totally different tax break. They did this recently with Social Security--no explicit tax on the SS benefit, but taking the SS money caused another tax to increase. Same effect as an explicit tax, just a different methodology. Hmmm, a very real possibility, I think. Never underestimate a politicians desire to get his hands on your money.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement