What difference does it make if you pay taxes before investing the money or after? A Roth IRA has you pay the taxes up front, and the 401k has you pay taxes when you withdraw the money. Both of them grow tax-free. Mathematically, it shouldn't matter unless you anticipate being in a different tax bracket when you retire vs. when you are contributing to the accounts.Originally posted by: Vic
Or they could just junk 401ks entirely, and people would have to pay taxes on all their income before investing it, like they did before the 401k tax break was put in place in 1980.Originally posted by: ElFenix
it'd be awesome if they turn the 401k into a giant robbery system like social security.
Many people view the Roth IRA as a hedge against higher tax rates.