Author Topic: Can your 401(k) account be too big?  (Read 2519 times)


MDM

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Re: Can your 401(k) account be too big?
« Reply #1 on: February 25, 2016, 08:38:01 PM »
Not a bad article. 

It highlights the legitimate issue of folks paying a 15% marginal rate while working but "having" (not the worst problem...) to pay 25% marginal on withdrawal. 

Also "... take advantage of years when their incomes are lower, like after they retire but before they reach age 70 1/2, to convert some tax-deferred retirement savings into a Roth account."  Someone has been peeking at http://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/. ;)

arebelspy

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Re: Can your 401(k) account be too big?
« Reply #2 on: February 27, 2016, 02:54:18 AM »
No, not really.

But let's put out an article that gives a few weak reasons why, so people latch onto those and have yet another excuse not to save!  :)
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seattlecyclone

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Re: Can your 401(k) account be too big?
« Reply #3 on: February 27, 2016, 09:56:01 AM »
Well, at some point you have enough in your 401(k) that you can live a happy life with just the money in there. At that point, adding another cent to it means you're working when you don't have to. In that sense, yes you can have too much in your 401(k).