Totally agree. And in the extremely unlikely event that there's even a half serious future consideration of starting to tax Roth withdrawals, I imagine that everyone will just empty their Roth accounts long before the legislation passes.If you're worried about that, and using that as a reason to not convert, what about the more likely (IMHO) that the first thing they would do is raise all tax brackets, LTCG brackets, and maybe even pre-Tax withdrawal brackets (as in, decouple them from the regular brackets)? Those would have much more revenue impact and are less of a political hit changing 32% to 35% vs changing 0% to anything% and a very public breaking of a "promise" that Roth's grow tax free. Also, practically speaking, they'd have a very hard time applying it retroactively because no one is recording basis on Roth, and to tax contributions would be a fight for double taxation. So any change would only be from that day forward and there's very little $ in that. (read: not worth the political blow back)What about the risk of Roth assets or distributions being taxed directly/indirectly in the future? While I think that's highly unlikely, anything is possible, and it seems like that risk is never really considered and discussed. Since no one knows the future I like the approach of diversifying across taxable/pre-tax/Roth
You can't make decisions on those sorts of what-ifs.
Statistics: Posted by Rocinante Rider — Mon Dec 09, 2024 7:35 am — Replies 94 — Views 7266