2. Another advantage to a 401(k) account is that you can borrow from it if necessary. I funded my first business investment with a 401(k) loan that was a rare case of winning at least three ways: (A) I borrowed the money by cashing out a portion of my bond funds that were yielding low returns during a period of low interest rates; (B) I paid the loan back to myself; and (C) the interest was tax deductible because it was for a legitimate business purpose.
3. The one downside I see to a Roth IRA is that nothing prevents Congress from changing the law in the future and making your withdrawals taxable. This is why I’ve always said that a Roth IRA is OK, but I would never recommend doing a conversion from a traditional IRA to a Roth.
“The one downside I see to a Roth IRA is that nothing prevents Congress from changing the law in the future and making your withdrawals taxable.”
Well, they’d have to change the law and tax law to do that. Even if they did it would just elimate the ROTH, which, I believe, most politicians use themselves.
Then there’s the whole issue of Fed taxes already being paid on the money in a ROTH so it would not pass to tax them 2x. It would only apply going forward, basically eliminating ROTHs.
Yes, Congress can always ‘change the law’ which is why ROTHs are attractive. The Fed Tax is paid going in so the tax obligation is removed at that point.
But yes, a Greece-style raid is not out of the question considering the Marxists in the media and gov. Buy gold? But that can be outlawed and seized too.
WHAT EVER CONGRESS CAN GIVETH
CONGRESS CAN TAKE AWAY