raceanoncr
Well-Known Member
Here is the other thing to consider with an annuity, the money is paid out right when you pass away to your beneficiaries, with a 401k that all has to be named in your will costing you extra money for a lawyer. Plus, you have to consider probate or estate courts, which in my state are 9 months after you pass if you have a 401k set up in a will. Here is the other thing 401k's, cd's, and other things are subject to estate tax, on top of the income tax...Roth's are not subject to estate tax!
This may all be true but one big prob I have with Roths is that you're limited to just $5000 a yr. With 401 you still can log out going on $20000 right off the top. That's a big incentive to me.