I'd Tell Anyone in This Situation to Stop Funding an IRA or 401(k)
There may come a point when the tax break isn't worth it.
I'd Tell Anyone in This Situation to Stop Funding an IRA or 401(k)
Overview
You'll often hear that if you're trying to save for retirement, your best bet is to make contributions to an IRA or 401(k). That's because these accounts are loaded with tax breaks.
With a traditional IRA or 401(k), your money goes in on a pretax basis, allowing you to legally shield some of your income from the IRS. Investment gains in an IRA or 401(k) are also tax-deferred, which means you don't pay the IRS on those gains until you take withdrawals.
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Originally published at www.fool.com.
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