While everyone has been distracted by the drama coming out of Washington a new tax was instituted that affects Roth IRAs. The change is so significant that many people will need to change their retirement plans if they wish to meet their retirement goals. Because this has been such an underhanded and sneaky tax increase on retirees and retirement planning it takes a bit to show how they will collect the tax from you. And there is no way to avoid the new tax on Roth IRAs, including the Roth portion at your work 401(k). Let me start by showing you the basics on how Roth IRAs work over traditional retirement plans. They just started taxing your Roth IRA. Tax on Roth IRAs As you likely know, Roth IRAs avoid income tax on distributions but get no deduction for contributions. This is actually a trade-off compared to traditions IRAs (tIRA), 401(k), and other traditional retirement plan options.…