Thread: maxing a 401k
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Old 10-03-2007, 09:38 AM
AL5AcE AL5AcE is offline
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Join Date: Jan 2005
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Default Re: maxing a 401k

Yea, what he said above. Your 15% capital gains will be taxed every year, preventing you from reinvesting this money, which would have worked to compound a lot over 40 years. When you withdraw your 401k and the tax is applied, the two net results are close but still significant.

I also recommend you spend 5 min. figuring out your future tax bracket, and calculating the difference between the capital gains tax and the tax deferred option.
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