No. of Recommendations: 1
There's another risk with Roths that's not often mentioned, but I believe to be very real. Roth withdrawls will be tax free only as long as Congress doesn't change its mind. How long were Social Security benefits tax free? Then Congress finds they need to raise revenue and finds a target in this formerly tax-free income source. Then they get hit a second time (raising the max amount taxable from 50% to 85%). Even the latest tax cuts didn't consider reducing the tax on social security.

In 15-20 years, with baby boomers in full retirement mode and social security straining to meet it's promises, all that tax free Roth money is going to present a pretty tempting target.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.
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.