Change the Rules for the Roth IRA?
September 24th, 2007 | by rocketc |I just began contributing to my first Roth IRA this month. We are contributing 5% of our monthly income - a pretty high percentage, but we have a lot of catching up to do. I am 33 years old and have less than 3K saved for retirement - depending on how the stock market is doing that day. I opened a Roth because with three kids, we have almost no tax liability anyway. Another tax deduction would not help us all that much. The point of a Roth is that current contributions are taxed, but future withdrawals are not taxed.
The I ran across this post by Blueprint for Financial Prosperity that raises the specter of the government changing the rules and taxing Roth withdrawals. There are no plans to do this (that I know of) and it is not the point of Blueprint’s article, but the idea that it could happen is almost too difficult to think about. The more I consider the idea, it seems unlikely that the government will be able to restrain itself with all that cash just sitting there in retirement accounts. . . - rocketc
