Can congress tax roths?

Submitted by Jon Steffen on Tue, 2019-03-05 23:31

Any solid info on this?

All i hear is that “Congress wouldn’t do that, because the public would go bonkers.” That’s not really a solid answer, just speculation.

But what I want to know is if there is a law/rule that says, if Congress decides to do away with Roths, they all must be “grandfathered” in as tax free buckets for people.



Submitted by Alan - IRA critic on Thu, 2019-03-07 01:13

There isn’t such a rule, but tax legislative history would indicate that the chance of such action is extremely remote, not worth worrying about. Conversely, there is major concern that people are not saving enough in retirement accounts. Besides, post tax contributions generate much more tax revenue under the current 10 year budgeting cycle, and that fuels Congressional spending.

Submitted by William Tuttle on Thu, 2019-03-07 02:22

  • When social security SS was first passed, it was promised that SS payments would never be taxed, because SS taxes were not deductible. In other words after-tax contributions and tax-free distributions. Sound familiar.
  • Well guess what, based on AGI up to 85% of SS benefits are now taxable. If they can tax the third rail of American politics, there is no gurantee Roth IRAs won’t be eventually taxed at a certain AGI.
  • They could also do something like they do with tax-exempt income. They could at it back in for MAGIs such as ACA (or its replacement), IRMAA, etc…

Submitted by Richard Rea on Thu, 2019-04-04 00:05

..they run the casino we operate in and they can change the rules any time they want.  See post below on the tax grab they are now proposing. https://irahelp.com/forum-post/36800-retirement-enhancement-savings-act-2018-passed-house-now-senate-finance-committee

Submitted by Richard Pucciarelli on Mon, 2019-04-08 15:09

I have a client that has been offered an opportunity to modify her alimony agreement and take a liump sum. It is my understanding that a lump sum is tax free to her and non-deductible to the ex’s estate. (he has passed). Is my understanding correct. The offer is at a discount. 

Submitted by Alan - IRA critic on Mon, 2019-04-08 15:16

Since this divorce likely occurred prior to 2019, the old rules still apply. Alimony payments are taxable to the recipient and deductible to the payer.

Submitted by Jay Wiedwald on Sun, 2023-01-22 21:41

“Since this divorce likely occurred prior to 2019, the old rules still apply. Alimony payments are taxable to the recipient and deductible to the payer.”My understanding is that if a divorce agreement is modified to change the terms of alimony then the current tax rules apply. The fact that in this case the alimony appears to be out of an estate could affect that.

Submitted by riiupw afrass on Mon, 2021-10-18 14:29

I have a friend who is over 40 and has no family because he played in casinos until he was 35. He had two girlfriends who could not stand his constant games and losses and left him. Probably even if you create a separate family account, then a person addicted to the casino will find ways to withdraw this money for the game. Guys, what have you heard about SEO optimization https://seo-casino.com/ for casinos? Is this a new way to lure players? Or am I misunderstanding?

Submitted by David Carrell on Sun, 2022-10-16 22:31

Existence of such a law would not matter even if it existed. A future congress (and President) could pass (and sign) a new law allowing taxing Roth’s. We are always subject to Congress later changing the rules.

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