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Author: wacc One star, 50 posts 10+ Year Anniversary! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25247  
Subject: Income tax rate on withdrawl? Date: 12/24/1998 5:14 AM
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Are contributions to a non-matching 401k the optimal choice if you plan to hold low/non dividend paying stocks and project being in a high tax bracket after age 59 1/2? I am concerned that on withdrawl I will be taxed at a very high marginal income tax rate rather than the much lower long term capital gains rate if I held the same stock in my taxable portfolio. I acknowledge the power of tax deferred compounding when there are taxable dividends or capital gains distributions, but if your total return is dominated by long term capital gains (very foolish) .... does the 401k lose its allure?

Thanks Fools!
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