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Strategies & Market Trends : A.I.M Users Group Bulletin Board
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To: rgammon who wrote (17626)12/28/2001 2:21:14 PM
From: doniam  Read Replies (2) of 18932
 
Are you sure about taking tax free distributions from a ROTH after five years but before aged 59.5? My understanding is that only the investment amount can be withdrawn <59.5 without paying tax, but perhaps I can't read Pub 590 correctly.

Re future changes to the tax law, I would be more afraid of a national sales tax or VAT instead of a income tax. If this occurs then an old fashioned IRA would be better than a Roth as tax free distributions would be of no benefit. Long term tax planning is very difficult, as evidenced by the sweeping changes from TRA 86.

Best for the new year
-don
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