Retirement and 401(k)

When $1 Million in a 401(k) Is Really $600,000

Rodney Brooks
January 18, 2019

That $1 million in your 401(k) account looks mighty good. It's more than you've ever had in your life, and that money will fund your retirement. But it's not quite yours. Your retirement account is tax-deferred, not tax-free. And Uncle Sam hasn't been paid yet.

"Some people have this notion that when they retire, they don't have to pay taxes," says Nicolas Abrams, president of AJW Financial Partners in Baltimore. "I don't know who started that rumor, but I have to dispel that myth."

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Be sure to check out "Fixing the Racial Wealth Gap" by Rodney Brooks

"Rodney A. Brooks's “Fixing the Racial Wealth Gap” is one of the best written and most prescriptive books I’ve read on this prickly subject. Using powerful stats, stories and insightful wisdom, it is written from the heart, mind, body and spirit … plus years of research and thought as a mainstream journalist. Fixing the Wealth Gap is revealing, humorous, instructive and sobering." - Dr. George C. Fraser