Assumptions: Yearly $2,000 of income invested for a period of 30 years at an 8% average annual return. 28% income tax and 20% capital gains tax (paid yearly for Basic Savings). Lump sum distribution made at retirement and all taxes paid in full. Company match contributions are 25% of employee contributions and are fully vested. This analysis does NOT rely on the common assumption that income taxes in retirement will be lower than current income taxes. If it did, the difference between the tax-deferred investments and the taxable investments would be even greater.