ST Alpha - "The tax advantages a 401k provides have basically disappeared since the 401k was created, and they no longer make sense to have... " (Reading a Post)

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The tax advantages a 401k provides have basically disappeared since the 401k was created, and they no longer make sense to have...

Posted by Tim (aka othertim) Jul 21 '20, 17:25

and it's the company match that employers offer that are the primary benefit to them now, since it's "free" money.

https://www.bloomberg.com/opinion/articles/2020-07-21/401-k-plans-no-longer-make-much-sense-for-savers (www.bloomberg.com)

Responses:

glaring: "The capital gains tax rate was 28% in 1980, 0% today." -- nm - Max Jul 21, 19:54 1
- that's only for the median household income example though, because it falls in the 12% marginal tax bracket. -- (edited) - znufrii, 2020 apocalypse bingo player Jul 21, 19:57
I cashed out my 401(k) when I was furloughed in March, and I'm getting a better ROI because I have like 1000x the options for investing - Mr. Havens Jul 21, 19:52
Interesting -- nm - Epiphany Jul 21, 18:18
at the median income, and ignoring the potential availability of Roth-designated contributions. -- nm* - znufrii, 2020 apocalypse bingo player Jul 21, 18:00
I've been having this consideration since my employer is suspending the match starting next month. -- nm - Judge Bane Jul 21, 17:33 2
- Eek. -- nm - Tim Jul 21, 17:34 1
  - It's a temporary measure to prevent layoffs, but it's forcing us to consider some stuff. -- nm - David Jul 21, 17:40

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