[Fred]

That simply results in transferring money from taxed savings accounts to untaxed accounts, she said.

The stupidity is absolutely shocking, all a 401k does is DELAY when one pays taxes on the income, the taxes do not go away.... The hope is that when one starts making the withdrawals one will be in a lower tax bracket..

Eva - what you refer to is a Roth. With a Roth one pays the taxes the same year as the deposit, then, there are no taxes owed when one withdraws the money at a later date.

[Eva]

No, you are probably too young to remember the ESOP program which predated the 401 k. It wasn’t around all that long, but I remember it, because we were not allowed to roll over dividends under the ESOP and when it became a 401K, we were not permitted to roll the dividends, either, because they couldn’t separate the ESOP dividends from the 401K dividends.