The 401(k) was an innovative savings plan in it's day, but who did it benefit? It took the tax responsibility off the employer and put the risk in the hands of YOU, the employee. Any tax payer would know that the tax bracket has drastically changed since the 401(k) was introduced. So, let's ask the question, does yesterday's 401(k) retirement savings plan make sense for TODAY? The concern is that HOW YOU CONTRIBUTE to your retirement account may be out-of-date. Are your retirement savings tax options limited to two buckets? The "tax me later" and "tax me now" buckets? Let's discuss and explore a third tax option for your retirement savings, the "tax me never" bucket. In this video, we discuss why your current retirement plan might be outdated. We review the three main types of retirement account buckets: 'tax me now,' 'tax me later,' and 'tax me never.' We delve into the history and changes in the 401k plan, tax brackets, and interest rates over the years. Finally, we explore whether it makes sense to reallocate funds into the 'tax me never' bucket to generate more tax-free income.
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