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