[island911]

"For certain things like home purchases, I believe you can withdraw without tax penalty too. "

I once worked with a guy who thought that to be true. He was PISSED!!!! when he found out how little he had after "penalties."

Perhaps things have changed since then. . .tho I doubt it.

Also, remember, the words "tax defered" means that the politicians will have a HUGE, slow-moving taxation rate target, when all the 401k's start cashing out. I can hear the futrure now, the politicians saying "look at all the money we saved you . .. all that tax deferment .... you really should be taxed at a higher rate on that money."

Also consider the general trend in taxation rate. . do you really expect that your taxation rate will be oh so much lower, 30 years from now?