converting IRA to Roth IRA based on new Roth Rules vs. 72t

[ejman]

Has anyone seen a constitutional amendment indicating that Roth's will never be taxed? short of that, anything can happen with future taxation rules. If the need is great enough I'm sure the govmint will figure out a way to tax Roths also. Personally, I'd rather avoid paying taxes on my IRAs now, (I'm 59) when (if) I get to 70 1/2 who knows what the world will look like and what my IRA balance will be.

I sure would hate to pay a ton of taxes now or over the next few years just to have the value of my investments pull another March 2009 stunt for a long time afterwards.

 

[harley]

Has anyone seen a constitutional amendment indicating that Roth's will never be taxed? short of that, anything can happen with future taxation rules. If the need is great enough I'm sure the govmint will figure out a way to tax Roths also. Personally, I'd rather avoid paying taxes on my IRAs now, (I'm 59) when (if) I get to 70 1/2 who knows what the world will look like and what my IRA balance will be./QUOTE]

In as much as politicians tend to prefer to be reelected, I doubt very much they would start to tax Roths without grandfathering in existing balances. I would not in the least be surprised if they find some way to add a tax on withdrawals on future contributions, though. Although, if you think about it, they should prefer Roths, since the money is taxed up front, and they (pols) tend to shortsightedness.

 

[teejayevans]

In as much as politicians tend to prefer to be reelected, I doubt very much they would start to tax Roths without grandfathering in existing balances. I would not in the least be surprised if they find some way to add a tax on withdrawals on future contributions, though. Although, if you think about it, they should prefer Roths, since the money is taxed up front, and they (pols) tend to shortsightedness.

They will not tax roths directly, but they will do it indirectly. Like add Roth
withdrawals into calculation of whether your social security should be taxed.
Likewise, they won't cut social security, they will just increase the
percentages taxed. The taxes will be stealthy and small.
Remember if they announce they will taxed Roth
withdrawals, most people would be able to take it out before the president
had a chance to sign it.
TJ