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Reply to "IRS 401k bombshell, now what?"
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[quote=Anonymous][quote=Anonymous]Sounds like a revenue raiser to me. Make people pay tax at the highest rates of their peak earning years. They should shut down Roths though. Terrible tax policy. But those are generally most beneficial for those who save in them when young, when their marginal rates are lower. Few people have marginal rates higher in retirement than their peak earning years. I doubt this is beneficial to most. [/quote] I agree. Roth is a great tool when young and in a low tax bracket, not so much when you are in peak earning years. Most of us could use a tax break now more than later, so a traditional IRA is a better option. That said, there's a good chance taxes will go up when we retire. [/quote]
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