Originally Posted by
m3113n1a1
This is what the MBCBP is:
Hey, how about we lock your 401k excess cash in a vehicle that underperforms the s&p for the next 30 years so you can defer your taxes until retirement? Sound like a good deal to you?
Oh, you wanted to invest the excess into your Roth IRA, real estate, businesses, or your personal brokerage account? Nope! Not allowed.
Yes, this.
I’m not a one issue voter, but if the MBCBP is not optional I’m not for it. I’d still rather pay the income tax on the excess and do what I wish. I can back door it for now into Roth IRAs for spouse and myself. Put it in my kids 529 plans. Or buy high dividend paying investments in a normal brokerage. Or even buy real estate, pay off debt, etc. The point is, why lock ourselves into something that in the end is very mediocre.