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Financial Planning / Foolish 401(k)s


Subject:  index funds in a 401K Date:  4/1/2000  11:07 AM
Author:  rlar Number:  7230 of 26295

I see that index funds are encouraged in's survey of 401k's. Why would one have a very tax-efficient vehicle in a tax-deferred account? Wouldn't it be better to have index funds outside the 401k and have funds that have higher turnover and short-term capital gains in the 401k?

Thank you for your response.

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