Saturday, May 17, 2014

Will the tax-free Roth retirement account really stay tax free?

Maybe not, warns Megan McArdle.  She decided to do one anyway.

1 comment:

JLM said...

Withdrawals from Roth retirement accounts will never be "taxed." But…the day will probably come when people making Roth withdrawals will see their income tax increase. (Even now, recipients of income from tax-exempt bonds often pay more tax than they would had they not received said income.)

Perhaps the most cautionary tale involves Panama Canal bonds. By a 1909 Act of Congress "the bonds herein authorized shall be exempt from all taxes or duties of the United States…."

Is the federal estate tax levied by the United States? Apparently not. See Greene v. United States: