Tyler? Yep.
You made $60,000 this year as a teacher? Oh, uh, so- No. Maxed out my 401k with $20,500.
Oh, so just taxed on $39,500? Yep. And that brings me from the 22% tax bracket to the 12% tax bracket.
Hey, but we're gonna get that money when you leave this fancy job. No, if I leave before I retire, I'm either going to leave my money with this company's 401k plan, or just roll it over into an IRA of my choosing. Both options avoid the 10% early withdrawal penalty.
Hey, but we'll tax you on all $3,000,000 of that when you turn 59 1⁄2. No, because I don't have to touch this account until after I turn 72, when it will be worth closer to $8,000,000. I only actually have to take out an average of 4% of that per year.
You'll be in a much higher tax bracket then, so we win. No, remember I'll be retired in a much lower tax bracket. You've done your homework. Just follow Social Cap. He makes complex finance seem easy.