This is the real source of the market's weakness. And the confusion is justified. Obama has sent out so many conflicting and menacing signals that one can reasonably believe any scenario is possible.
My personal opinion is that putting more money in tax-deferred accounts at this time is not a good idea. For one thing there is no reason to doubt the Obamoids will try to force conversion of them to this bogus Social Security Plus idea of theirs-- including Roth IRAs the only real reform in the last fifty years.
Second, the whole point of deferring taxes is to take advantage of lower tax rates in the future, when earned income presumably drops in retirement. The probability is, tax rates will be much higher in the future than they are now, even for low income retirees. Why defer a (say) 25% tax for a 35% tax in the future?
Third, there is no guarantee that the bull market will return any time soon. There may be a 50% rally, like there was after the crash of 1929, but it led only to the lower market bottom of 1933. It took decades, including the hyperstimulus of World War II, to recover. And we haven't seen the bottom of this perfect storm as yet.
Fourth, we are currently in the midst of a campaign to destroy the currency. The value of the dollar is doomed, as we manufacture multi-trillions of dollars that don't exist for the sake of "bailouts" that won't work. The looters have seized the Capitol and opened the floodgates.
I can't tell you what to do, but my intention is to conserve cash, with an interest-earning money market fund I can make withdrawals from and write checks out of, and use my money now, while it it still worth something: reduce debt, trade the market volatility right now, and buy real assets. Plus I have a small stash of gold and silver for the day when hyperinflation hits. JMO.
Happy Thanksgiving.
Why? Compounding, tax deferred. Could be a better bet.