UnThreaded | Threaded | Whole Thread (38) | Ignore Thread Prev | Next
Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 817263  
Subject: Re: 401K to Roth 401K conversions Date: 1/13/2013 10:01 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
vkg, here's a case in point:

A tax loophole contained in the Kemp-Roth Act (1981) was quickly exploited. For a time, wealthy people put millions of lump sum dollars into life insurance policies because of the (then and now) favorable tax treatment of life insurance policies. Per the Kemp-Roth Act, insureds subsequently took the gains tax-free. Uncle Sam recognized this and said, “Hey, where’s my cut?!”

The solution was to disallow big gobs of money to be put into life insurance policies. This was accomplished through the Tax Equity and Fiscal Responsibility Act (1982). TEFRA was created to generate revenue through closure of tax loopholes and introduction of tougher enforcement of tax rules. Uncle Sam, through Congressional action, said, “There…fixed that.”

Same thing here...Congress may rationalize that there's lots and lots of "revenue" to be gained from now-tax exempt ROTH IRAs. ("You didn't build that.") What can stop them from reconfiguring the tax laws so that they get what they think they need from a revenue rich target: your IRA?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (38) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.