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Roth IRA may be taxed in the future?


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I could see the US possibly ending the Roth IRA (it is such a great vehicle) for new annual contributions at some point well into the future (under more dire circumstances), but not turning accounts that are already ROTH IRAs in to taxed accounts.

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Guest ValueCarl

This is interesting while they don't even address the poorer amongst us who were converting traditional IRA's as a result of lower income thresholds and "paying taxes" on valuations which may or may not be higher at the point of such a change in earlier "promises" by their government.

 

Tea parties, eh?  :(

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They will tax the Roth via the VAT.  That way they don't go back on their word.  It will be years from now, but that is my prediction.

Another possibility is the way they do social security via a sliding percentage based on gross income.

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I think a VAT is inevitable, preceded by higher personal income taxes.

 

Personally, I'd like to follow Michael Burry's advice and move to Canada, where at least the currency is strong and you get something for your taxes!

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It's funny because I was just going to post this same question and see what the board thought.  I asked my accountant about it once and she said it was possible but extremely unlikely.  I decided to add some to 401k and max out the roth every year, in case my tax bracket is higher when I retire.

 

Can someone explain in layman's terms how the VAT would work?

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