The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: The 401(k) World||Date: 5/3/2013 11:54 PM|
|Author: intercst||Number: 72174 of 77093|
<<<— Wealthy people who would have had large savings anyway get a nice tax cut that offers no meaningful incentive effect.>>>
Balderdash!! 401k distributions are fully taxed at ordinary income tax rates. How is this "a nice tax cut?"
A wealthy worker in the top tax bracket has a good chance of managing his taxable income in retirement -- especially if he's living off dividends and capital gains rather than a pension.
I know my tax rate is a lot lower today than when I was working and avoided paying taxes at a much higher marginal rate on my IRA/401k contributions.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|