Do you believe our government would tax us on Roth IRA?

United States
August 6, 2010 11:08pm CST
It is been a concern for us all these times. Would our government tax our Roth IRA in the near future? Although they promise that Roth IRA will be tax - free, but many people just won't simply trust their government for that promise. Taking Argentina for instance. Their 401k was taken over by the government eventually, and average citizens were taxed. So, this instance really affect our confidence on the government unstable policy. What do you think?
1 person likes this
1 response
LadyMarissa
@LadyMarissa (12148)
• United States
7 Aug 10
The ROTH IRA is tax free IF the funds have been there for 5 years or more & you don't withdraw more than what you have contributed & you have attained the age of 59-1/2. IRAs were NOT set up to be just a savings account...they were created as a RETIREMENT fund!!! The 59-1/2 age requirement is waived if you become disabled. You pay the taxes on those funds before you make the contribution; so, if you follow the guidelines set up by the government, withdrawing the funds should be tax free!!! Direct contributions to a ROTH IRA may be withdrawn tax free at any time. Any capital gains, dividends or interest must remain in the ROTH IRA until you reach retirement age where your percentage of tax should be much lower than when you were younger. Do you believe our government would tax us on Roth IRA? YES, I believe that our government might find a way to tax us on our ROTH IRAs...so, NO, I would NOT be surprised to hear that the rules have been changed so we had to pay taxes on ALL withdrawals!!!
kingparker
@kingparker (9673)
• United States
7 Aug 10
We all knew this rule, but what I am saying is, would the government change the rule in the future? That is what I am asking. With all these unstable policy, would the government going to tax those IRA fund to raise their money?
LadyMarissa
@LadyMarissa (12148)
• United States
7 Aug 10
I understood what you were saying & I replied to it... YES, I believe that our government might find a way to tax us on our ROTH IRAs...so, NO, I would NOT be surprised to hear that the rules have been changed so we had to pay taxes on ALL withdrawals!!! You would be surprised how many people do NOT understand how IRAs work, so I simply took the opportunity to explain it to anyone confused!!!