While I haven’t thought long and hard about this, I wonder if a plan like a controlled 401K rollover to Roth IRA would work for people.
The idea is to basically give people the option to take a 15% tax on part of their 401K to roll it over into a Roth IRA right now. DC gets their cash now and the 401K owner gets to grow their remaining 90% tax free. I’m in my early 40s and can see some benefit to doing this sooner rather than later.
I haven’t given much thought to it if I’m missing something, but it’s an idea :-).
Make that 85% tax free :-). New math.
I really like that idea.
If anything, for years Congress has fiddled with the idea of scaling back or eliminating Roth.
“controlled 401K rollover to Roth IRA would work for people”
You can do that now.
In fact, if you quit or change jobs you can roll all of it to a self-directed IRA without paying any taxes or penalties.