Traditional IRAs have been a popular and often beneficial form of retirement planning. However, changing tax consequences and common misconceptions for IRAs create a need to reconsider if these accounts are still the best route for saving for retirement. Since these accounts are tax deferred rather than deductable, account holders can be hit with increasing tax liability as marginal tax brackets change over time and tax rates rise. In addition, the required minimum distributions that must be taken out after age 70 and a half creates confusion for many and can result in large penalties if not taken.
See Andrew McNair, 3 Reasons to Ditch Your IRA, Market Watch, Nov. 11, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
