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One comment that may or may not apply..... Posted by MI-Roger [Email] (#882) [Profile/Gallery] (more from MI-Roger) on Mon, 2 Apr 2007 03:49:45 In Reply to: We max them all, Geoff, Sun, 1 Apr 2007 13:04:51 Members do not see ads below this line. - Help Keep This Site Online - Signup |
We are not maxing out annually as you are but have still been cautioned to pay careful attention to how much of our assets are in "tax deferred" accounts.
"Tax deferred" means just that. Taxes on the growth are due when the funds are removed from the plan, and they must be removed via an approved schedule. You can't leave the assets untouched in the plan for your heirs just because you don't need the money right now.
Retirees can receive the unpleasant surprise of having a greater taxable income, and therefore tax liability, AFTER they retire because of the taxes they must now pay on the growth of funds in their IRA and 401(k)'s.
Just a heads-up.
posted by 68.40.14...
_______________________________________ Saabs owned: 2008 9-5 Aero Sedan, sold at 227K miles 2006 9-3SC 2.0T - Wife's daily driver 2000 Viggen Convertible - Sold May, 2022 1964 Quantum IV Formula Car - Retirement project 2000 9-5lpt Sedan, sold at 318K miles
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