"Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes". Gregory v. Helvering, 69 F.2d 809, 810-11 (2d Cir. 1934)

Over and over again the courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant" (pp. 850-851).                     Newman v. Commissioner, 159 F.2d 848 (2d Cir. 1947)

Judge Learned Hand (1872 - 1961) United States Court of Appeals, Second Circuit

Our current rates of taxation are at some of the lowest levels since the IRS was first created in 1913. We also have the highest National Debt in our history. These two facts alone have most experts convinced that America’s economic future will include tax increases. If that holds true, then it would make sense to pay your taxes NOW while they’re low and when you take your money out in retirement, you enjoy it tax-free.

If you have a 403(b), 457, 401(k), an IRA, SEP IRA or any tax-deferred program, then it is crucial to see the eroding effect that taxes will have on your savings. The notion that you can save money during your working years and delay the taxes until later because the IRS promises that you will be in a lower tax bracket in retirement is quite a leap of faith.

I often ask this question:

"If you were a farmer, would you rather pay taxes on your seed or on your harvest?"

This important point is almost never made. When your accountant told you to put money into one of these plans, did they have a strategy in mind for getting your money out? Do you think it would be a good idea to have a strategy in mind before you put money into a plan like this?

There are more efficient ways to save. In fact, some methods have been validated for well over a century and can provide far more benefits than one receives from a Qualified plan. 

After all, who do you think created the 403(b), 401(k), IRA, SEP IRA and others like them?

Who do you think promotes these plans?

The answer is: The Government.

Who do you think benefits most when you put your money into one of these plans?