What are the chances that the tax-free nature of a Roth IRA will be reversed?
At this time there is no indication that the Roth IRA’s tax-free nature will be eliminated. Of course, tax law is subject to change, so a key part of any decision to contribute or convert to a Roth IRA is what you expect your current and future income tax rates to be. Keep in mind that your future income tax rate does not simply depend on your expected level of future taxable income, which is difficult enough to project. It also depends on the tax brackets that may or may not be in place far into the future, not to mention whether our current overall tax system will continue to remain in place (e.g., graduated tax rates vs. flat tax).
