restoreliberty Wrote:
Nov 30, 2012 11:44 AM
Not only can you use a 401(k) to legally avoid higher tax rates you can also open and IRA (which does the same thing tax wise) which you have more control over. A bank held cash IRA isn't going to earn any real interest in our economy, but it isn't going to lose much of anything either - maybe a one time annual maintenance fee. However, whether you hold cash or mutual funds, or stocks in your bank held IRA is up to you. The difference is that IRAs are much easier for individuals to access and utilize. Employer held 401(k) have rules of operation for loans, hardship distributions, early distribution restrictions, etc., most of these conditions do not apply to IRAs. You will pay taxes at the time that you take money out, and you may even