I am not keen on trading a current tax deduction for the promise of one in the future when there’s nothing that stops Congress from taking away the future tax exemption for Roth IRAs. A Roth conversion is even more ridiculous because you’re trading away PRIOR tax deductions for a future one that may disappear.
And here’s the best part of the story ...
When I explained my rationale to my financial advisor, he agreed with my cynicism and began advising his other clients NOT to do Roth IRA conversions.
TBH I could work and live without investments. I do enjoy a house though.
Roth or traditional will get pillaged the only question is when. The combined pot of retirement savings is too large for politicians to keep their greedy hands off. It will start as only a small tax but once, as is the norm, the mechanism is in place the rate of raiding will only increase. The left will make pushing granny of the cliff fashionable.
The government will always have a hook. The question is how big is it?
Accounts which have the smallest government hook as possible is the goal.
I totally agree! In Florida, we have a really good system for the IRA and I stayed with traditional also.