March 28, 2008 :: Curt Van Emon

The value of your 401(k) is dependent on the tax rates when you make withdrawals

The value of your 401(k) is dependent on the tax rates when you withdraw money from it. Some think this will place restrictions on politicians in the future who want to raise taxes as all those owners of 401(k)’s will see the value drop with higher tax rates. Others are sure tax rates will have to go up because of the serious shortfalls in Social Security and Medicare. What this means is dependent on the individual but if you have a large 401(k) balance and that’s your primary retirement ticket, then you’ll probably want your representative to advocate for low marginal tax rates so the value of your 401(k) is there for you when you need it.
http://www.nytimes.com/2006/11/09/business/09scene.html