Traditional 401(k) and IRA have a couple of issues. From a tax standpoint they’re going to grow tax-deferred but they’re going to be taxed on distribution. Uncle Sam is going to take a big chunk of that.
If you save a million dollars that's not what you will get.
What you actually get is $700,000 because Uncle Sam will get $300,000 and that’s if the Tax is at 30%. In the future it may be much higher.YES. You read that right. If you have a traditional 401(k) or IRA you have a large Tax Liability.