Wow. When you withdraw money from a 401k or IRA, it is taxed as normal income - when you contribute to one of these accounts, it doesn't count against your tax liability. Therefore, all the taxes that you would have paid on that income (contributed to a 401k) you still have to pay, but only when you withdraw - get it?
Anyway, the accrued deferred tax revenue on these things - to be paid as the baby boomers withdraw from them upon retirement - is 3 trillion dollars(with a 'T'). To put things in perspective, that's about the same size as the national debt. Talk amongst yourselves.
Marc
Posted by thynkhard
at 2:36 AM EDT
