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I recently read an article, I believe it was in the Washingtonian, about how the government could raise enough money with no income tax. Bottom line is that sales tax would be about 25%, but income tax would be zero. It would do all sorts of things like encourage saving (since you're only taxed on what you spend), and it would more or less get rid of the IRS and all of those tax forms. It sounds unlikely but still within the realm of possiblity - and I was thinking what if this happens before I'm ready to retire? (because it will be a long time before I do retire, and maybe they will find a way to make this idea work by then)

My QUESTION, though, is - how would this affect a ROTH IRA, where you've already paid the taxes? Would you get some kind of huge refund? Or would they just say "sorry"? On the flip side, how would this affect a regular IRA or a 401K? Would these investment vehicles suddenly become on par with what former Roths used to be? Would you suddenly be able to take it all out (as long as you met the age requirements, etc.) tax free?

Maybe there's no "correct" answer. Or maybe I'm worried for nothing - it will all work out, whichever IRA one uses. But I would love any informed and educated speculations, because I just have no idea.
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