Re: Roth taxed in the future?
Well, let's put it this way. I think your concerns are very valid Sweeps, and with the way the government is running up a huge deficit I have no doubt in the 30-40 years when I Retire that ROTHs as they exist today will be unlikely. BUT government does not generally to retroactive tax changes. So I do feel safe assuming everything I put in, and earn, until they change the law will be tax free at withdrawal. I don't even want to think about the nightmare that would impose on tracking what portion is taxable and not, but the nightmare already exists somewhat with all the different IRAs, nondeductible contributions, conversions, differences in state laws, etc..
You know the government recommends you keep every form 1040 and retirement-contribution related records and forms FOREVER and this is precisely the reason why.
Not putting all your eggs in one basket is probably the safest bet. But if ROTH puts you way ahead I don't think it is the worst to rely on it for the time being. When/if the law changes you can change your strategy.
|