The only thing good about 401k’s is the matching funds from your employer.
and the tax deferral
“The only thing good about 401k’s is the matching funds from your employer.”
A Company match of 6% or so is definitely helpful but relatively small compared to the amount one should be saving for retirement. A person should probably be saving at least 20% if you wish to have a decent standard of living in retirement. If your Company provides a higher match than 6% that is even better.
The benefit of 401Ks is not being taxed on the front end which allows the account to compound and grow tax free. Of course you pay the taxes on the backend when you withdraw it. So there is no free ride on a 401K. But it is helpful way to save money that otherwise might just get pissed away.
401K’s represent a huge amount of money the dems want to tap in some way. I don’t see them confiscating it. They don’t have to. They will just change the rules and increasingly tax the crap out of it.
It is probably wise in your retirement years to pull out as much pre-tax savings as you can stand each year. Taxes have nowhere to go but up given the out of control spending by all the politicians in DC.
That’s just silly talk.
The tax shelters can be even better than matching funds if you have the right IRA versus most corporate 401k’s.
And not taxing 401Ks until distribution. Nice!