Is the Federal Government Going to Tax Your Roth IRA?
The Power Of Zero Show · David McKnight
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Show Notes
David suggests avoiding the shift of everything out of your IRA or 401k into the tax-free bucket because, by doing so, you would then have a standard deduction in retirement that sort of sits idle.
$25,900/year is the standard deduction for a married couple.
According to David, what you want to do is to be very careful about not converting too much money from the tax-deferred bucket.
Most retirement savings are in tax-deferred vehicles, says David.
Roth IRAs are the one thing that both consumers and the Federal Government like because they lead to you using after-tax dollars and it gives more revenue to the Federal Government – and it does so today, not in 20 years.
For David, the Federal Government has several tools to deal with inflation. Raising interest rates as a possible solution can create a scenario where both interest rates and the cost of servicing the national debt go up.
Mentioned in this episode:
David's books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram