{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"The Latest Proposal to Tax Roth IRAs: Should you be worried?","description":"Should you stop doing Roth conversions as part of your retirement planning after Senator Ron Wyden\u2019s new legislation targeting specific retirement accounts? David McKnight breaks down the key aspects of the proposal and what it actually means for the average American (and their retirement).  Show Notes In this episode, David McKnight looks at whether you should stop doing Roth conversions following Senator Ron Wyden\u2019s introduction of legislation for taxing Roth IRAs. For David, 99.9% of Americans should continue investing in Roth accounts with a high degree of confidence. One of the biggest misconceptions floating around is that Congress wants to start taxing everyone\u2019s Roth IRA.  However, that is simply not what Senator Wyden\u2019s proposal does, as its focus are so-called mega-retirement accounts. These are retirement accounts \u2013 whether traditional IRAs, Roth IRAs, or Roth 401(k)s \u2013 that have grown to extraordinary sizes, often tens or even hundreds of millions of dollars. Senator Wyden\u2019s proposal only applies to taxpayers with very high incomes ($400,000 for individuals; $450,000 for married couples) and only if your combined retirement accounts exceed $10 million. In other words, if you don\u2019t have more than $10 million spread across your retirement accounts, the proposal doesn\u2019t apply to you. Do you exceed that threshold? Then, know that the proposal would require annual distributions from the excess amount. The rule becomes even more restrictive when balances exceed $20 million. David believes that the average American shouldn\u2019t be nervous about investing in Roth accounts \u2013 he shares four reasons why. Reason #1: Congress likes Roth accounts, because, from a Government\u2019s perspective, Roth accounts accelerate tax revenue. The second reason is the fact that Roth assets are still a relatively small piece of the retirement landscape. \u201cMost retirement money in America is still sitting inside traditional tax-deferred accounts\u201d, he explains. Reason #3: the Government has always had an implicit agreement with America on Roth accounts. The fourth reason why David doesn\u2019t believe you should be nervous about investing in Roth accounts is that they\u2019re still your best protection against what\u2019s coming down the road. The national debt is set to grow by $2 trillion per year over the next 10 years and $3 trillion per year after that. According to a Penn Wharton study, once the country hits a debt-to-GDP of 200% in 2040, no combination of increasing taxes or cutting spending will prevent the nation\u2019s financial collapse. That\u2019s why, David is confident that around 2035 Congress will have little choice but to tax increases. Mentioned in this episode: David\u2019s national bestselling book: The Guru Gap: How America\u2019s Financial Gurus Are Leading You Astray, and How to Get Back on Track DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Senator Ronald Wyden Penn Wharton (The Wharton School, University of Pennsylvania) ","author_name":"The Power Of Zero Show","author_url":"http:\/\/davidmcknight.com\/","html":"