Menu

Home › Forums › Other › How are people dumber than us going to make out with their 401(k)s? › I do not understand the often

June 1, 2012 at 1:39 PM #744783
dumbrenter
Participant

I do not understand the often repeated claim about 401Ks and IRAs being tax heavy come distribution time.

If I put money in 401K now, I am saving money on taxes I would have paid today (of which I have no choice in matter of taxes).
However, when I draw money when I am old, I could CHOOSE to draw as much to manage my tax bill.
Assuming we still have a progressive tax system 40 years from now, I can draw as much to keep me in a very low tax rate at that time. So why is this option bad?