The Tax Foundation has released its report, “What Rothification Means for Tax Reform.” The report begins as follows:
Rothification is the compulsory conversion of some or all traditional defined-contribution plans to Roth-like plans. While that definition can seem like a mouthful, it may soon be important to understand the concept and what it means for tax reform. Rumor has it that policymakers are considering using Rothification to raise revenue as part of a broader tax reform package. Despite this, Rothification’s ability to raise long-term streams of revenue remains highly suspect. What follows is a brief description of our current retirement savings framework, how Rothification could change it, and an analysis of the potential revenue gains.
See full report at: What Rothification Means for Tax Reform – Tax Foundation
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.