The Death of the ROTH IRA
I’ve come across much concern regarding tax free retirement accounts (ie. Roth IRA) and how they will be affected by a new administration and a new domestic fiscal policy. Many people claim that the dem’s are not particularly fond of the Roth IRA and some even insist that it will be eliminated before the end of ’09.
www.RothIRA.com claims that, “Major income tax changes are highly likely in 2009. Since Roth IRAs have never been popular with Democrat party politicians, 2008 may be your last chance to set up a Roth IRA and to reap its benefits with tax-free growth.”
They go on to state that, “On May 17, 2006, President Bush signed the Tax Increase Prevention and Reconciliation Act of 2005 into law. This tax bill included a provision dealing with conversions of traditional IRAs to Roth IRAs. Starting in 2010, the existing $100,000 income test for converting a traditional IRA to a Roth IRA will no longer apply. Conversions that occur in 2010 will be able to have half of the taxable converted amount taxed in 2011 and the other half taxed in 2012.”
I personally believe the Roth IRA has flourished under the last 8 years (at least contributions to it by employed citizens) I also believe that it is too functional of an investment vehicle for it to be eliminated by the new administration. After all, isn’t the Roth IRA’s number one investor the middle-class worker?
What say you?
December 8th, 2008 at 10:32 am
Yea,
I heard this too about Roth IRA’s. I hope it’s not true, but shit mine isn’t worth a dime anymore…jk…but not really
December 8th, 2008 at 12:25 pm
Obama says he may not tax ANY retirement account for the first 50K. This may make other types of IRA’s more favorable in comparison….traditional IRA’s, etc.
LINK:
http://www.marketwatch.com/news/story/obama-proposes-tax-free-ira-withdraws/story.aspx?guid={37E3D656-3D70-4C09-BF6F-FAA775D994F8}&dist=msr_5
December 8th, 2008 at 12:26 pm
Thanks for the good note Akmed. Much appreciated!
December 8th, 2008 at 12:42 pm
yea right. the roth aint goin nowhere. it was set up for middle-class working stiffs like me!!!!!!!!!!!!!!!
nice drawing though it cracked me up
December 19th, 2008 at 6:50 pm
Hypothetically if the Roth IRA were to be taken off the table… If you already have one do you get to keep it? Basically anyone opening an IRA in 2010 would not have the Roth option?
December 20th, 2008 at 5:16 pm
This is all hypothetical, but yes if it is taken of the table and you currently have one open you will keep it.
May 13th, 2009 at 12:22 pm
Whenever I hear anyone refer to the “Democrat party” I know that they’re GOP stooges and that I’m being lied to. Thus, Roth IRAs are safe. rothira.com is just trying to increase their business in a rocky time.