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Happy Anniversary Roth IRA – and Tax Changes to Disallow Recharacterization starting 2018
By Scott A. Bishop, CPA/PFS, CFP®
Most people know that 2018 starts a year with a brand new tax law (some of the highlights can be found in this linked summary). However FEW know that it is the 20th anniversary of the Roth IRA…I started my first personal Roth IRA in 1998! I was talking about this anniversary with team as part of Ed Slott’s Elite IRA Advisor GroupSM. The Slott team had a lot of thoughts to share.
The year 1998 seems like a long time ago. In January 1998, Bill Clinton was in the White House and about to be impeached. The Unabomber was in the news and the Spice Girls were winning music awards. January 1, 1998 also brought us the launch of Roth IRA. However, unlike other ‘90’s memories, the Roth IRA is still going, stronger than ever. You may already be reaping the tax benefits of your own Roth IRA. Or, maybe you’ve hesitated to open one. The 20th anniversary may be the time for you to take the plunge…
Before we proceed, I wanted to let you also know that my friend and IRA Guru Ed Slott, CPA also reviewed and wrote me a Forward to our Retirement Survival Guide that will appear in the 2018 update. I talk about the benefits of the Roth IRA many times in the guide where we help you with an eye toward “Planning for Retirement the R.I.T.E. Way®” (R.I.T.E. Stands for “Retirement Income Taxed Efficiently).
Ed Slott was recently quoted in Forbes as saying (and I agree):
To celebrate the 20th Anniversary of the Roth IRA, Ed Slott and Company wanted to share 20 Roth IRA facts you need to know to maximize the value in YOUR Retirement Plan:
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