@Gorm50
Sorry that you seemed to have misunderstood my statement - it is NOT what happened, it is what was proposed. Thank Goodness, it did not progress to a tax change. I don't think the purpose was so much any taxation but that the ROTH account(s) begin to be reduced with distributions thus limiting the amount of tax-free gain over a lifetime.
My statement said "we just don't want them to change the law so that they count both IRA & ROTH IRA amounts when determining the RMD from the IRA account - that came up before under the Obama Administration."
No, it didn't get any headwind when it was proposed under the Obama Budget proposals. Think it was 2015 . But several of the proposals made back then are also being considered now - so it is best to keep abreast of any changes which are being proposed.
Plus, I am old, and don't remember quite so well - this is what I am referring to in my statement:
This is a 2015 (for TY2016 )budget proposal tax changes which I am referring to - most of the changes, if any, did NOT get approved.
Back then, they called this the "Treasury Greenbook" - as I understand it, an analysis by Treasury on budget proposal on how to increase revenues.
US Treasury: Feb. 2015 General Explanationsof the Administration’s Fiscal Year 2016 Revenue Proposal... Start on PAGE 143 of the actual report under the heading of: SIMPLIFY MINIMUM REQUIRED DISTRIBUTION (MRD) RULES
specifically under the PROPOSALS - (page 144) at the end reads as:
The proposal would also harmonize the application of the MRD requirements for holders of designated Roth accounts and of Roth IRAs by generally treating Roth IRAs in the same manner as all other tax-favored retirement accounts, i.e., requiring distributions to begin shortly after age 70½, without regard to whether amounts are held in designated Roth accounts or in Roth IRAs. In addition, individuals would not be permitted to make additional contributions to Roth IRAs after they reach age 70½. The proposal would be effective for taxpayers attaining age 70½ on or after December 31, 2015 and for taxpayers who die on or after December 31, 2015 before attaining age 70½.
It's Always Something . . . . Roseanna Roseannadanna