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The Hidden Gamble in 401k and Defined Benefit Plans

Posted by | law, retirement income, small business, tax strategies | No Comments

A defined benefit plan or 401k plan is a great way to shelter money from taxes.  While the benefits are well established, a key omission is you have to pay those taxes later. Will taxes be lower or higher in the future?

As recently as 1978 income over $200k was taxed at 70%. Taxes are historically low now.  Are we deferring taxes now at a lower rate only to be taxed at a higher rate when we retire?   Maybe a more diversified approach is needed. Read More