Dec 21

I am young, and I know most financial advisors/calculators out there tell you I would stand to benefit from being in a ROTH IRA. However, after researching this, I know longer believe there’s any guarantee the gov’t will keep the policy of not taxing my returns when I retire 30 years from now. I’d rather take the tax benefit now. Your thoughts?

2 comments so far...

  • dan Said on December 21st, 2009 at 10:22 pm:

    If you contributed the money into the Roth this year (2007) you can do what is called a “recharacterization.” The company you invest with will have a form to fill out. The only thing is, you can recharacterize THIS year’s contribution back to the traditional IRA, but any contributions you made to a Roth in prior years cannot be recharacterized.

  • Steve R Said on December 21st, 2009 at 10:28 pm:

    You put in after-tax money into your ROTH IRA. The money will grow tax deferred and if in 30 years they do decide to change it, the only money that would be taxed is the growth, not your initial deposits.

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