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Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: Roth taxable now??? Date: 8/5/1998 11:46 PM
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<<Actually KAT has already weighed in on this issue which I raised in one of my posts. Evidently, the way the law reads right now, ROTH distributions are NOT part of income when calculating the tax on SS.

How long that lasts is anybody's guess.

I for one don't see it changing for the Roth per se. My guess is ultimately the Congress will simply tax Social Security on 85% of that received from the very first dollar paid. There will be no test or anything else to worry about. Quite frankly I don't understand why they have waited so long to do so. It's a juicy pot to tap, but I think the fact that seniors vote keeps them chary of doing it. Nevertheless, I think it's coming.

Regards....Pixy >>


[[Yeah, yeah, I know--I'm making two replies to the same post. Sorry about that....]]

Pixy,
Seems to me that they could easily tax the Roth (not per se, but effectively) by phasing out SS payments for people who have other retirement income sources (such as a Roth or Regular IRA). People are already starting to talk about means-testing. As we all know, there is a big crunch coming to the SS system in the next few decades.

Ray
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