[quote=carlsbadworker]I completely agree with edna_mode. The economists have already been talking about value-added-tax in place of income tax as the way it works in pretty much the entire world. If that happens, there is no tax benefit from Roth anymore. I would caution those who think Roth is definitely better, “tax” diversification is the way to go.[/quote]
It’s one thing to change the rule on new contribution. It’s another thing to change the rule on pre-existing investments/contribution. If it’s that easy for them to change the taxes of pre-existing Roth accounts, wouldn’t that also mean it would be just as easy for them to remove tax benefit of traditional 401k/IRA? They can easily make it all taxable all the time. So, there’s no deferral tax benefit.
BTW, I don’t know about you guys but if everything goes as planned for me, I’ll be much better off when I retire than where I am now. So, even if it’s deferred, I would still be paying more taxes than I do now. I also won’t have kids/house/etc. to write off like I do now. If I’m afraid of them changing tax rule for Roth, I would also be afraid of them changing income tax rule as well.
