How the Roth IRA got its name

When Senator Roth introduced a bill for an individual retirement account with no upfront deduction, part of the superficial appeal was that the revenue damage to the budget came outside the budget window.  He called it the IRA Plus.  My boss at the time (1988 or 1989 or 1990), Senate Finance Chair Lloyd Bentsen, said that PLUS  stood for “Pay Later, Uncle Sam.”  That retort became Tax Notes’ quote of the week.  The name IRA Plus disappeared, and Senator Roth’s name got attached to what became the Roth IRA.

 

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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