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KAT wrote:
<<My guess is that Congress will not choose to impose this indirect tax on Roth IRAs, although I wouldn't bet the house either way.>>

Pixy and KAT:
None of the calculations of ROTH v. Deductible IRA that I've seen take any account of the fact that taxable IRA income affects the taxation of SS income and phase out of deductions, while under current law ROTH withdrawals do not. In effect the calculations assume that the changes Pixy suggests might occur actually will occur.

If Pixy's speculation is correct you should still use the ROTH if the calculations come out that way. If current law prevails the ROTH has another advantage. Further if Pixy is correct the most likely change will be to simply add the ROTH withdrawal to AGI. This still favors the ROTH because it adds the after tax amount, rather than the larger pretax withdrawal from the deductible IRA.
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