Congress Can Effectively Reduce the Spiraling Deficit By Requiring Retirement Plans to Offer a Roth Option, Says Nancy Hite, CFP®, fiduciary

BOCA RATON, Fla., July 7, 2025 /PRNewswire/ -- America's ever-increasing deficit can be reduced without raising taxes, said Nancy Hite, CFP^®, fiduciary, and author of The Retirement Mirage: Time to Think Differently.

"Americans collectively hold over $39 trillion in retirement assets," Hite explains. "This includes IRAs, 401(k)s, and both defined contribution and benefit plans—but excludes public pension reserves."

Congress could immediately consider requiring all retirement plans to offer a Roth option so individuals could decide to place a portion of their savings in Roth accounts—thereby paying taxes voluntarily in advance, she said.

These balances represent deferred tax obligations that could, in part, be accelerated, if retirees were given the option and incentive to do so. If even a small share of new retirement contributions—or existing savings— were shifted voluntarily into Roth accounts, it could result in upfront tax revenue for the U.S. Treasury, which would dramatically help reduce the ongoing deficit.

At the same time, it would allow future retirees to secure tax-free income on those converted savings. The result? A dual benefit: greater predictability for government cash flow now, and more financial flexibility for retirees later.

"Retirement thinking in the 21st century must evolve beyond last century's model," says Hite.

There are only three things you can do with money: spend it now, spend it later, or spend it never. Against the backdrop of rising national debt, this voluntary strategy could generate significant federal revenue—without raising tax rates or rewriting tax code.

By Congress requiring retirement plans to have a Roth option is one sure way to do it, said Hite.

Nancy Hite, CFP^®, fiduciary, and author of The Retirement Mirage: Time to Think Differently, proposes Congress consider requiring all retirement plans to offer a Roth option. This way, individuals could decide to place a portion of their savings in Roth accounts—thereby paying taxes voluntarily in advance.

Nancy Hite, CFP^®, AIF^®, is a nationally recognized financial educator, author and founder of The Strategic Wealth Advisor^® known for simplifying complex financial issues with practical, client-focused solutions.

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SOURCE Nancy Hite