Here’s a little tax humor for you:
“What did the Taxman say to the Qualified Plan?”
“Give me, give me, give me.”
I offer you this possible chuckle with a bit of seriousness too. It’s clear that many people contribute (or have an employer contribute on their behalf), to a qualified plan, such as a 401k, ESOP, defined contribution plan, or other pre-tax savings program. However, it’s also true that in order for these contributions to actually be taxed at a lower rate than your current rate, you’d have to have less income, for one, and the tax rate could not have increased, for another. But will both of these future conditions really be met?