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Financial Planning / Foolish 401(k)s


Subject:  Post-tax vs Pre-tax Date:  6/11/2002  7:38 PM
Author:  Lemurosity Number:  15084 of 26270

I'm in my mid-twenties and have about $30K put away already because I've maxed out my contributions over my first three years with a "real" job out of school. Good news for my future, bad news for my stock of drinking stories over the last couple years.

In talking with my friends, we were kicking around ONLY contributing to our 401k plans with POST-TAX contributions. Our thought is that we're likely to be in a higher tax bracket in the future, and that paying the taxes now is better than paying them on gains in the future at a higher %.

Does this logic make any sense, or are we deluding ourselves??

Thanks in advance.

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