Below are excerpts from a Barron's article warning of possible tax increases, in the long run, on Roth IRAs, making traditional dedectible IRAs more attractive by comparison.
Barron's, March 5, 2007 "Breaking Faith on Savings Is Very Easy" By Edward F. Mcquarrie
The idea that Congress will never change today's Roth provisions for the worse, for the rest of your life and the life of your heirs', requires more faith than reason. [...] Consider just a few ways a future Congress, hungry for revenue, might renege on that promise of "tax-free forever." Congress decides to include Roth distributions in the definition of "modified adjusted gross income." [...] Congress revokes the tax-free status of Roth distributions after the death of the initial Roth account holder and spouse. [...] Congress imposes an excise tax on "excess" Roth accumulations -- a nice round number like $1 million. [...] Congress sets a deadline after which excess distributions from a Roth account -- more than $100,000 a year is a likely number -- will be included in ordinary income and taxed at your regular rate. [...] Once enough money accumulates in Roth accounts, Congress may simply tire of seeing such enormous amounts of wealth escape the tax system. It could "close the loophole," simply by sunsetting the Roth after a certain date. [...] A better choice for that young person may be to accept the tax subsidy right now to reduce the expense of a contribution to a traditional
401(k)-type plan. The subsidy can easily exceed 40% in a high-tax state. That's a bird in the hand, much to be preferred to the dubious promise of "tax-free forever."