Will Congress Someday Repeal the Tax-Free Roth IRA Promise?

Michael Kitces writes about the unlikeliness of Congress repealing the tax-free Roth IRA despite being legally able to do so. Kitces claims that eliminating Roth treatment actually scores very poorly in Federal revenue projections, due to the 10-year budgeting process that is typically used to analyze major tax law changes. However, it is certainly possible that some crackdowns and loopholes will come for Roth accounts. This article discusses the potential changes that might be in store for Roth users.

The article begins as follows:

The Roth IRA has become immensely popular in the nearly 20 years since it was first created – driven no doubt by its favorable tax-free treatment for all growth spent in retirement. From Roth IRA contributions, to Roth conversions, or Roth 401(k) and other employer retirement plans, there are more and more ways to get money into a Roth.

In this week’s #OfficeHours with @MichaelKitces, my Tuesday 1PM EST broadcast via Periscope, we look at the issue of whether retirees may be banking on too much of a good deal, though, and whether Congress might someday repeal the tax-free Roth treatment and renege on the Roth promise. Should retirees hedge their bets against a future tax law change?

Read the full article here: Will Congress Someday Repeal the Tax-Free Roth IRA Promise? – Kitces.com

Posted by Pooja Shivaprasad, Associate Editor, Wealth Strategies Journal