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Subject:  Re: The 401(k) World Date:  5/3/2013  11:54 PM
Author:  intercst Number:  72174 of 88417


<<<— 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.

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