Posted on 11/02/2024 4:38:03 AM PDT by Libloather
[ Insert “It’s a trap!” meme ]
401(K) is not the best way to save.
You get penalties for early withdrawal, and you will get hurt at the old age.
When you reach certain age, you are forced to withdraw, even if you do not need to. The tax rate on 401(K) withdrawal is like ordinary income, so you may end up paying a lot of taxes during retirement, paying large Medicaid premiums, etc.
Some 401 (K) are OK, especially, if you get employer match, but too much is not good.
Straight investment in stocks and funds let you tax lot of your income in long term capital tax rates, which, except for one, complicated exemption, is not available on 401(K) withdrawals!
Fattening up the savings accounts so Democrats can seize them in the future under the guise of government provided retirement payments.
LOL!! What savings?
By the time your 64, you need to start rethinking 401K contributions because of the Required Minimum Distributions that will hit in your 70s. Need to probably start winding it down so you don’t get forced to take too much out, which could drive you to a higher tax bracket.
Now, tell me again just “why” the IRS gets to tell any American how much they can save into an HSA, into an IRA, into a 401K?
Sure. “You” want to restrict how much of a tax deduction or how much a tax write off a person can make in any given year? Don’t like it, but fine. Put a limit on the tx side.
But why is the IRS penalizing Americans who save “too much” into an HSA account for their family?
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