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Canuck57[_9_]

On 14/06/2011 3:05 PM, I_am_Tosk wrote:
In ,
says...

In ,
says...

The employer is not going to be taxed but I bet those people taking
their 401k money out in the future will get their ass kicked on it.

Tax-sheltered retirement income is taxed as ordinary income when
distributed.
Always was, is, always will be.
It's expected that your income will be less when you retire.
You might be able to use Roth IRA's to some extent if you think working
vs. retirement yaxes will flip on you.
Normally it doesn't work that way.
Basically you've said if you're outside when it rains you'll get wet.

Right now a worker would be paying a very minimal tax on this money
but I bet those numbers will go up sharply as we try to dig our way
out of crushing debt.

Depends on income, but you have a point there.
Low income workers could lose by saving.
Here's the bright side.
Low income worker don't have any ****ing money to save.

What if everyone thinks the current tax on 401's is ok, tolerable so
they pump them up, and then "somebody" decides to say, triple the tax on
the 401's????

That is why I recommend a blended approach. Save inside and outside of
the 401K/IRA. So if you have a good investment year with gains, you
haul out less on the 401K. If you have a low year, haul out to the
lower tax rates. That is, use the 401K to control your total taxable
income.

If you are low income low tax already, unless the employer matches it,
you better of in a ROTH than 401K/IRA as you want only the high taxed
dollars into the 401K/IRA. That is, get a 30% deduction in, and
withdraw at 10% out.

--
Government isn't the solution to the bad economy, it is the problem.