CAN YOU TRUST THE GOVERNMENT NOT TO CHANGE THE ROTH RULES DOWN THE ROAD?
by Andrew Schwartz, CPA
Since graduating from college in '87, I have been a practicing tax accountant. On more than one occassion, I have seen the government enact legislation that reversed some of their previous tax breaks. How confident are you that the government won't find some way to tax your Roth accounts down the road?
The first reversal I observed was back in '97 when the government increased the percentage of social security benefits that is taxable from 50% to 85%. Don't forget that you can't deduct the social security taxes you pay into the system each year, which means you'll be taxed twice on any "benefits" you receive. When social security was first introduced, none of the benefit was to be taxable.
See other two reversals:
http://www.findagoodcpa.com/2006news/news1006.php
IRS might tell you donations NOT in good condition:
http://www.findagoodcpa.com/2006news/news0906.php
2007-04-05
06:14:24
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9 answers
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Anonymous
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Civic Participation