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12:15 Answer 1 of 1 Done Contribution to 401(k) plan is Tax Free at time of contribution Both Plans are taxable at the time of withdrawal after retirement. Since after retirement there would be no income, so only taxable amount would be withdrawals from the above two retirement plans. This will save current taxes and defer taxes after retirement. Maybe the govt may relax taxes for senior citizens in future. Job changes: Rollover to new employer available for both plans and not taxable if rolled over and thus continuity of both plans available. Total Retirement Fund before taxes expected $ 1,698,408 at the end of age 60, as calculated in below spreadsheet. > 1 1 1 1 2140 1500 OH? 2015 GOO M8012 2310 800 802 434 LUIS 4.14 LIM un 1.300.0 1,280 4,70 3.280 35 OM 1 12 13 14 18 14 11 14 2 18 41 LINSES 1320, 20 immi 14 CORSO 20 4340 20 . The traditional IRA and 401(k) plan preferred since employee is having a moderate salary of 69,000 per year for 30 years. The contributions over the years are tax deductible and thus reduce the tax liability for 30 years. What happens after 30 years is not known and uncertain. So preferable to pay taxes on retirement withdrawals in this case, since no other income would be expected given the moderate income and may also stabilise taxes after retirement. 12:15 Answer 1 of 1 Done Contribution to 401(k) plan is Tax Free at time of contribution Both Plans are taxable at the time of withdrawal after retirement. Since after retirement there would be no income, so only taxable amount would be withdrawals from the above two retirement plans. This will save current taxes and defer taxes after retirement. Maybe the govt may relax taxes for senior citizens in future. Job changes: Rollover to new employer available for both plans and not taxable if rolled over and thus continuity of both plans available. Total Retirement Fund before taxes expected $ 1,698,408 at the end of age 60, as calculated in below spreadsheet. > 1 1 1 1 2140 1500 OH? 2015 GOO M8012 2310 800 802 434 LUIS 4.14 LIM un 1.300.0 1,280 4,70 3.280 35 OM 1 12 13 14 18 14 11 14 2 18 41 LINSES 1320, 20 immi 14 CORSO 20 4340 20 . The traditional IRA and 401(k) plan preferred since employee is having a moderate salary of 69,000 per year for 30 years. The contributions over the years are tax deductible and thus reduce the tax liability for 30 years. What happens after 30 years is not known and uncertain. So preferable to pay taxes on retirement withdrawals in this case, since no other income would be expected given the moderate income and may also stabilise taxes after retirement