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I was wondering if anyone here saw the Jan Consumer Reports article on retirement touting ESPlanner software as a credible tool.

One of the conclusions they reported from using the software to look at various scenarios is that maxing out contributions to tax-sheletered retirement accounts may actually hurt someone financially. The reason was there would be higher taxes on social security distributions due to higher withdrawals from the tax-sheltered accounts.

Depending upon individual estimations of future tax rates one might prefer a Roth to a 401k if one has a choice - but to make a statement indicating contributions to tax sheltered accounts may be unwise just seemed unjustifiable

I'm wondering if I'm missing something.

Tom in Congo

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