Quote:
Originally posted by Capt. Carrera
I disagree. It will be the, "Hey, you haven't paid taxes on that 401k", bubble. Expect to see taxes jump, and I do mean jump, to cover boomers.
I'm a tail-end boomer. And I'm investing a fair portion of my after tax income.
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As a leading-edge boomer (1946) and retired, I will probably pay more income tax when I start withdrawing from my IRA/401K's as I did when working. If you have any income at all, your social security will also be heavily taxed as our ever greedy legislators neglected to index the threshold when they started making social security benefits taxable back in the early 80's.
A Roth IRA would have been much better in my case but we were always over the income threshold and as someone stated, there is no guarantee they won't come after Roth's eventually.
Capt. C has it right, sock a good portion of your after tax income away, don't depend just on qualified plans.
The reality is, your tax problems may get worse when you retire if you diligently saved for your retirement. There is no "tax free" retirement.