The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  https://boards.fool.com/roth-protection-taxes-state-laws-10097842.aspx

Subject:  Roth, protection, taxes, state laws Date:  2/4/1998  4:45 PM
Author:  KentuckyLiz Number:  1623 of 105397

Greetings, Foolish friends.

I was checking out a really neat site:
http://www.rothira.com
which has a collection of articles and information about the Roth IRA, and I ran across some information that concerns me. This site is good because there are some articles targeted for financial planners, accountants, attorneys, etc.--more technical information than the general interest articles floating about.

Concerns: in many (19?) states, legislation is needed but I can't get information about the specific legislation. But, the end result is to:
1. Give Roth IRA's protection against bankruptcy and lawsuit awards (traditional IRA's and other retirement accounts already enjoy this protection).
2. Make Roth IRA annual earnings and distributions exempt from state taxes.
3. Frosting, but it's worth asking for: making Roth IRA conversions and contributions exempt from state taxes. (Some states have done this.)

I have contacted my state representative and several authors of articles and can't get specific information on the legislation needed. HELP!!! My state's general session only runs through April and it's gotta be done queeeeck-like so I can make my conversion in '98 with full confidence. I am warning others: do not convert or contribute until you KNOW your state has passed legislation to protect your Roth IRA.

Contact your state legislators now. And post back or email me if you have any specifics on model legislation that I can pass on to my state rep!

By the way, I'm not a political maven by any means, and I'm not even a citizen (application being processed now), but getting constructively involved on issues like this is worth rolling up the sleeves--it helps you, others, and the government.

KentuckyLiz

Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us