You pay taxes when you withdraw the money from the 401k unless it is a Roth 401k. What she don't understand is you have to withdraw a minimum amount after you reach 70 1/2. Supposed to withdraw it all by they time you are 85. This is retirement money, not taxable money. Hope the GOP keeps the senate and takes the house. California Democrats are pouring into Georgia senate races. Georgia needs to keep close tabs on this runoff race. We need at least one to control the senate to keep Demoncrats from passing anything. Pray and send money to the two Georgia Republicans.