So here's a different twist:
I thought about this thread this weekend while we had some friends over for a few drinks. Somehow the topic of 401k's came up and I was shocked to hear my friends DW getting so upset. She was getting mad at him for putting money in a 401k all his working years and now they are having to pay the taxes on it. Their RMD's started last year, IIRC. I started to say something about the matching funds, compounding interest of a 401k and lower tax rates in retirement but I kept my mouth shut and just decided maybe she shouldn't drink.
I don't think these guys are rich but they seem to be comfortable. So, she doesn't seem to have a problem with the 401k
money rolling in, but she somehow feels they shouldn't be paying anymore taxes, now that they are retired, even on their deferred money.
Hey that is a nice thought.
I may suggest to my friend that
he explains the incredible value of a 401k for us "commoners", once she sobers up.
Hey my RMD's starts soon, so maybe I should be sure my DW understands that too since she heard all of this.
1st world problems...