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Originally Posted by CRFSaver
Either way you get the tax benefits from the 401K that benefit you infinitely more since you are probably very young and that extra cash that is not taken out in taxes will grow over 30 or 40 years.
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I see your point concerning the taxes, and since the money would be contributed to my 401(K) pre-tax, my earnings would be taxed less. But I also have to take into account that when it finally comes time to retire and withdraw from my funds, my 401(K) funds will get taxed at that time. And if I assume that tax rates are much higher in 40 years, my tax benefits now will lead to tax negatives in the future.
Again, I am no investing expert, but tell me if my thinking is wrong...
IMO, having the ability to withdraw my retirement funds in the future tax free is worth the $10/week I would be saving in taxes now.