Roth: Still the Right Choice

Neal R. VanZante, CPA, CMA, CFM, CFE, and Ralph B. Fritzsch, DBA, CPA

In the August 2009 CPA Journal, David Hulse stated that some CPAs and other financial professionals have been reluctant to recommend Roth accounts because they fear that a future Congress may eliminate some of the current advantages offered by them. Hulse then asked the title question, “What If Congress Reneges on Roths?” The article provided results of his analyses regarding how great the probability of Congress reneging on Roth provisions would need to be in order for contributions to traditional Individual Retirement Accounts (IRAs), 401(k) plans, and 403(b) plans to be superior to contributions to Roth IRAs. Early in the article, Hulse concludes that “thinking through all the possible scenarios for individuals in different circumstances can help a financial planner devise a prudent strategy.”