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While true, one doesn't normally have a tax rate that high when they withdraw from their 401ks, so their taxes will probably be less. Capital gains are untaxed
by astura 7y ago
While true, one doesn't normally have a tax rate that high when they withdraw from their 401ks, so their taxes will probably be less.
Capital gains are untaxed in a 401k.
Depends on the person and how they handle their finances.
- toast0 7y ago> Capital gains are untaxed in a 401k. Capital gains are taxed as ordinary income when withdrawn from the 401k. The timing is better (since you're not taxed on sale, you can rebalance at will), but the rates are worse than a taxable account. I'm just saying, if you count employer 401k match in your all-in comp figure, it doesn't make sense to treat it as untaxed; it will be taxed, the rate might be less, but it might not be that much less.