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Subject:  401(k) vs. after-tax savings Date:  12/6/2004  10:05 PM
Author:  jumpinjoe Number:  74466 of 127753

Has anyone looked at dumping the savings to a 401(k) and instead save that money in an aftertax account? Annually, I contribute 16% of my pay to a 401(k) plus a catchup contribution of $3,000 plus I fully fund a Roth IRA each year.

Looking at all the taxes that will be paid when the money comes out of the 401(k) or Rollover IRA combined with the required distributions starting at age 70 1/2, I am wondering if the 401(k) is the right way to go?

Any thoughts?
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