Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 657 other followers

  • Blog Stats

    • 271,194 hits
  • Posts By Day

    January 2019
    M T W T F S S
    « Dec    
     123456
    78910111213
    14151617181920
    21222324252627
    28293031  
  • Subscribe

  • Special Pages

Archive for the ‘IRAs’ Category

Roth IRAs Are Risky

Posted by taxguru on April 22, 1999

This letter was printed in the April 22, 1999 edition of the Wall Street Journal

Dear Wall Street Journal:

Karen Hube’s April 5 article on the debate over Roth IRAs was good. However, it didn’t mention the big reason I have consistently advised my clients to steer away from Roth IRAs; Congress’s inability to leave the tax code alone. Anything with a five year waiting period for the payoff is too risky. Congress has a long history of reneging on promised tax breaks. Just ask Social Security recipients who were promised their benefits would be tax free and now have to pay taxes on 85% of them.

Our leaders in DC are so generous now with the mythical budget surplus. When the economy turns, and the flow of tax revenues slows down, you can bet that certain tax deductions will see the hatchet. The Roth IRA may not be eliminated altogether; but at a minimum, its tax free status will be removed for evil rich folks. For Social Security recipients, the definition of evil rich is any couple earning over $34,000. While many may consider me to be overly skeptical, my 23+ years as a professional tax advisor have taught me the dangers of relying on promises from Washington for my clients’ financial well being.

Sincerely,

Kerry M. Kerstetter

Posted in IRAs, Roth | Comments Off on Roth IRAs Are Risky