just looking to find out if others have made the mistake of having too much being taken out of their paycheck for the US 401K plan only to learn the sup. saving plan is taxed at 38%. A fellow co. worker did this and after 23 years of saving found out had to pay 38% in taxes. He was taking out 50%.
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The tax laws are pretty clear. Guess “your friend” didnt follow them? Pity.
Hello Mark Ward,
Depends, did he contribute to Roth or Pre-Tax savings. Did he max out his Annual Roth limit, then the rest rolled over as pre-tax? How much is he planning to withdrawing per year? Tax brackets, etc, So many variables to consider here. The biggest mistake is learning financial literacy after retirement.