complicated issue and risk at bankruptcy

Pro:
1. you can dodge tax until distribution
2. may enhance kid college financial aid chance

Cons:
1. if your company have 401k matching/ESPP, is it based on the pay after deferral? if so, you will be losing a little bit here
2. though no penalty at distribution, very inflexible to change distribution schedule
3. danger!!! if company go bankrupt, then you become unsecured credictor
4. limited choice of investment options, if you can TDF and make 20% then you should not even hesitate

I am weighting the benefit vs the danger too. Should first max out 401k before considering this.

http://www.nytimes.com/2009/05/09/your-money/09money.html

所有跟帖： 

• 回复：complicated issue and risk at bankruptcy -jjj7- ♂ (115 bytes) () 11/08/2013 postreply 12:50:29

• 回复：回复：complicated issue and risk at bankruptcy -随其自然- ♀ (20 bytes) () 11/08/2013 postreply 13:07:05

• 回复：回复：回复：complicated issue and risk at bankruptcy -zzz123- ♀ (1238 bytes) () 11/08/2013 postreply 13:32:14

• 虽然小孩还有几年才上大学。要先研究好。 -jjj7- ♂ (16 bytes) () 11/08/2013 postreply 13:40:44

• 你是说，当年我放80%。这钱也要算到college -jjj7- ♂ (39 bytes) () 11/08/2013 postreply 13:35:11

• 回复：你是说，当年我放80%。这钱也要算到college -zzz123- ♀ (633 bytes) () 11/08/2013 postreply 13:56:01

• 。。 -随其自然- ♀ (6 bytes) () 11/08/2013 postreply 13:58:09

• 回复：当年的401k都要算的，这个也要算的。 -zzz123- ♀ (286 bytes) () 11/08/2013 postreply 14:00:45