Millions of taxpayers will be asking their advisors for Roth IRA contribution and conversion information. While some will rush in and take advantage of the Grapes of Roth, others will wonder who will watch over this statutory scheme after Senator Roth's influence is gone. May The Roth Be With You. Qualified distributions are not subject to federal income tax. Spread income on conversion aside, contributions may be returned income-tax free at any time.
Helps pass more assets to heirs.
No minimum distribution requirements for original owner. May use a new beneficiary's life expectancy upon death of last spouse beneficiary. Social Security benefits not taxable if distribution is qualified. Income taxes are paid at the current rate before assets grow significantly. Can do partial conversions.