I always hear that you save money on taxes when investing it in 401k.
This is easy to understand. Put $1000 in and you don’t pay taxes on it.
But you pay taxes on it when you withdraw it?
Ok, but how does this work to your advantage? You’re paying taxes on everything you withdraw from it anyway, so what is the gain?
Does the invested money being untaxed just allow more to grow in the meantime?
Thanks!
Submitted July 18, 2019 at 07:13PM by DirtyGhettoOmelette https://ift.tt/30LAqCN
