Here at DQYDJ, we like to write about things that have unintended consequences – a perfect example is the Alternative Minimum Tax, which was intended to stop the very rich from having a 0% tax rate. Of course, since that tax was not indexed for inflation, it has creeped its way into the middle class’s check book. Today we’ll link you to an article on another distortion of the AMT – deepening the “Marriage Penalty”, a situation where two singles would be better off, tax-wise, staying single as opposed to marrying.
Do you get a match? What’s the average management fee on your fund choices? Does your plan have all of the necessary asset classes? If you’ve got a 401(k) at work, no doubt you’ve been pressured to sign up (or automatically enrolled). How does your 401(k) stack up?