Thoughtful piece from the Journal. While I agree with the article's conclusion - that a future tax on properly-qualified Roth IRA distributions seems unlikely - I was unaware that there was a short period of time when Congress did change the rules:
Given the desperate need for revenue, this isn't a totally idle fear. And unfortunately there is a precedent when it comes to taxing those who have saved what lawmakers think of as "excessive." From 1987 to 1997 they imposed a 15% excise tax on annual retirement-plan distributions over $150,000. The tax applied even if other rules forced the account holder to withdraw more than $150,000, and it could hit retirement assets in estates as well.
But then the article goes on to say:
This particular tax was so hated that it is hard to imagine its return. Michael Graetz of Columbia University, a former top tax official at the Treasury Department, also thinks it is unlikely that lawmakers would enact a wholesale levy on Roth assets. "That would be like taxing salary twice," he says. "Congress has never done this, and there's no reason to expect it will."
Something to think about.
Tax Report: Is a Roth IRA Safe From Taxes? - WSJ.com
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