Here is a list of reasons this article explains why 401(k)s are not good retirement choices going forward. I will list them, and the article will give you an explanation for each reason.
- Every distribution you take will be taxed at your highest rate.
- Double taxation is often the norm.
- Mandatory withdrawals required at age 70½ (now changing to 72).
- It’s absolutely the worst account to leave a surviving spouse.
- Your account is fully exposed to tax law.
The article continues on by explaining why it is much better to pay your taxes NOW than to defer them to a future date. You need to give consideration to paying taxes NOW when they are historically low and transfer lots of tax-free money to the future for retirement.
- See more in the Kiplinger’s article, Reasons a 401(k) May Be the Worst Account to Have in Retirement
- If you’re unable to retrieve this article let us know and we’ll send you a copy.
