[packagingguy]

“AND LAST BUT NOT LEAST, WILL THE DEMOCRATS ADD RMD’S TO ROTH IRA’S?”

My father insisted I put money into a Roth IRA because he said no congressman would dare tax or add RMD’s to those funds. He said they would have no chance at re-election.

His attitude has changed quite a bit since then.

[Tell It Right]

I think they will. And even if they do, Roth IRA's are probably still the best investment vehicle. In part because since you don't get the tax break as you put money into it, but do from then on (assuming you honor the order of distribution rules) you're effectively choosing to pay taxes now while the rates are low (assuming you're not temporarily in a really high income bracket).

With that in mind I suggest, if you're married, to put more money into the spouse's Roth IRA that's the oldest more than in the one who's youngest, at least on the years you don't have enough money in your budget to contribute the annual max for both of you ($6K per person if under 50, $7K per person if 50 or over). Then when you're sure the oldest person's Roth IRA will be enough to live on after that person is 59.5 years old, put more emphasis on the younger person's Roth IRA from then on in case the Dims do add RMD's to them. The younger age not only makes it years longer before the RMD's kick in, but also when both spouses are old enough to do the RMD's the younger age will require less to be withdrawn (because the calculation is age based).