Roth-IRA’s
A client recently said Joe Biden wants to make Roth-IRA’s taxable upon death. Have you seen anything on this? Do you think there is much of a chance of this happening, or could there be a date where contributions after a certain time could go by this potential rule?
Permalink Submitted by Alan - IRA critic on Fri, 2020-10-16 18:23
Have not heard that. Roths are already taxable from the estate tax, but the unified credit is so high that very few people are subject to the estate tax. Biden proposes to sharply reduce the unified credit, and if that happens more people with Roth IRAs will be subject to the estate tax. But have not heard anything about income tax on Roth IRAs. Taxing them would create a double tax, except on earnings, so any proposal to tax Roths would probably be limited to earnings, and that would be a massive bait and switch action.