This is a fascinating read - <https://www.ssa.gov/...
# randomg
gorgeous-author-37828
11/29/2024, 3:40 PMThis is a fascinating read - https://www.ssa.gov/history/taxationofbenefits.html and also highly relevant in the roth vs traditional argument for those that are way below IRA withdrawal age. It's luck of the draw to know if gov will tax roth withdrawals in 40 years from now.
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thousands-lock-82725
11/29/2024, 3:45 PMWhy do you think this affects roth?
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gorgeous-author-37828
11/29/2024, 4:00 PMtraditional you already got your tax deduction, so not much they can do. Roth your relying on the gov not taxing you on profits in 40 years from now.
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thousands-lock-82725
11/29/2024, 4:05 PMThere's no mention of roth, only social security. You're saying the logic applies to roth as well?
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gorgeous-author-37828
11/29/2024, 4:10 PMPotentially, im saying there an argument to be made that a discount today (traditional) is worth more then a promised discount in 40 years given that there is precedent for the gov to start taxing previous non taxable things.
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gorgeous-author-37828
11/29/2024, 4:10 PMWhen you consider that social security is a tax, it's logical to say that we shouldn't tax a tax however when the gov needed money they were happy to do that as seen in the link above. All im saying is that's a big risk factor for young people doing roth and should be taken into account.
gorgeous-author-37828
11/29/2024, 4:12 PMPut it this way in a hypothetical, if the gov today needed 100 billion to continue medicaid tomorrow and without that money medicaid would go bust. They also know that there is 1 trillion in untaxed roth accounts getting withdrawn yearly. Do you really believe kamala and co wouldn't advocate to taxing that on the "Rich" who have these untaxed gains in there roth accounts??
gorgeous-author-37828
11/29/2024, 4:14 PMAlso keep in mind the roth accounts are very very new (around 25 years old) they have not been battle tested over time as the deficit grows.
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flat-daybreak-65495
12/03/2024, 7:02 PMTrue, but it's also luck of the draw regarding tax rates. Look at what they did to inherited IRAs. Literally decades of planning down the drain. As was noted on a podcast I was listening to yesterday, some hedging is usually the best alternative.
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