To: Kaslin
The 401k was NEVER a Tax-free investment It is a Tax deferred investment. The genius of this is that you pay tax on the money when you retire and you have very little tax deductions (no mortgage interest) so your tax rate goes UP! Nice deal for the IRS, bad deal for the taxpayer.
It is much better to pay tax today and have tax free income later. The Roth IRA does this, at least for now.
7 posted on
04/23/2012 4:59:42 PM PDT by
UnRuley1
To: UnRuley1
The genius of this is that you pay tax on the money when you retire and you have very little tax deductions (no mortgage interest) so your tax rate goes UP!And what will the tax rate be 15 to 20 years from now? No one knows.
22 posted on
04/23/2012 5:27:35 PM PDT by
Libloather
(The epitome of civility.)
To: UnRuley1
That would really depend on your income bracket now vs. what your projected income bracket would be from income garnered from your IRA nest egg that you can delay until 70.5 years of age.
40 posted on
04/24/2012 12:57:05 AM PDT by
Chgogal
(WSJ, Coulter, Kristol, Krauthammer, Rove et al., STFU. Thank you.)
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