re: #450 Belafon

I understand, but I guess the point is that someone who pumps that much money into their 401K, if they started out with nearly nothing on their own, is probably going to be spending quite a bit of it on retirement. Yes, they could die suddenly, and then there would be taxes owed, but under normal circumstances they’ll be using a good portion of it, driving themselves below the cutoff. That’s part of the point of those Prudential commercials I keep seeing.

Not necessarily, if they lived frugally to get there and continue to do so in retirement they can easily live off of the income generated off $5 million plus without ever having to touch the principal. Hell, they may even be able to keep adding to it in hopes of passing it on to their kids and grand kids.