In the hypothetical situation where an employee makes enough to max out their 401k and still live well, is it always recommended that they do max out their 401k?
The only reason I’m questioning this if what if the person wants to enjoy some of their investment earnings before retirement age, at say 40? If I remember right, 401k earnings are heavily penalized and taxes if they’re used before retirement age (what 55 now) so they would eliminate a lot of interest gains trying to enjoy that money. Where as a normal taxable investment account, you can withdraw gains and money anytime and usually only pay the long term interest gains tax of about 15%.
I’m sure I’m forgetting something. Any input?
Submitted December 14, 2018 at 06:36AM by 12thman-Stone https://ift.tt/2zXOm1g
