Does IRS Have Its Sights Set on Roth IRA’s?

gun sitesBy SD Contributor AGXIIK:

The government says that once the Roth is converted, there are no taxes on withdrawals after that.  Of course, the gummint is great at the big lie.  Anytime in the future the Roth safe harbor could be cancelledAll a president would have to do is pull the NDRP or NDAA trigger, and they own our butts. 

Most people would never even hear of the IRA grabs thus leaving themselves as a convenient target. Those that were smart enough to see this coming would do just what most of us are doing.  Slowly removing the IRA balances, paying the much smaller amounts of taxes and moving on.

There’s a good possibility that the GRA or pension grabs will move up in line of Federal control, thus leaving out the annoying waiting  for revenues and actuarial estimation of when the holder will die, with the estate coughing up half of the balances.

I don’t think the GRA is a feint. The Roth IRA conversion was the real feintProbably millions of Americans converted to the Roth, as it was suggested by many financial planners  as a good idea when tax rates were low.

At conversion the Roth coughs up a serious chunk of taxes.  Government says that once the Roth is converted, there are no taxes on withdrawals after that.  Of course, the gummint is great at the big lie.  Anytime in the future the Roth safe harbor could be cancelled.  All a president would have to do is pull the NDRP or NDAA trigger, and they own our butts.

Most people would never even hear of the IRA grabs thus leaving themselves as a convenient target. Those that were smart enough to see this coming would do just what most of us are doing.  Slowly removing the IRA balances, paying the much smaller amounts of taxes and moving on. The IRS wins but only on a minor income level.

The IRS calculated that the tax revenues from us old farts taking distributions into our golden years would represent a good solid revenue stream.  We would still be paying into the system just like when we made the big bucks in our more productive years. There is a reason you must start taking withdrawals at age 70.  The gummint is many things, but patience is not one of their virtues.

The gummint would have a nice solid predictable tax revenue stream from the oldsters that would help keep revenues stable.  The retirement plans really came into their own in the 1980, when tax rates were pretty low, thanks to Reagan. In the last 30 years rates have edged upwards in a fairly continual path, going much according to plan.  Outside the aberration of the Bush tax cuts that came on top of the war costs, the rates could be studied, computed on an reasonably accurate actuarial basis based on the aging of the population and the commencement of IRA extractions.  It was not so much the actual realized tax revenues; it was the realization that they were hard numbers that the Tax Nazis could count on.

Some of the things that the IRS did not take into account were the last two severe equity/Dow crashes, both of which stripped away a significant portion of the IRA overall values. 401k became 201k.   Nonetheless, the multi trillions in private retirement savings are both a short and long term target.  Short term due to the gummint greed and need for money now.  Long term in that the IRS will get a significant portion of the IRA balances over a 20 year distribution time line. There’s a good possibility that the GRA or pension grabs will move up in line  of Federal control, thus leaving out the annoying waiting  for revenues and actuarial estimation of when the holder will die, with the estate coughing up half of the balances.  The GRA may compete with the IRS as a revenue source, putting the IRS in second place even after all their careful plans and projections.
Socialist (IRS) are criminals with a slow time line.  Communists (GRA) are Socialists with a huge lack of patience and guns.  We’re sort of sandwiched between the two right now.

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