<prompt> Human: Just wondering what the tax rate looks when you actually try to withdraw. Im also curious what percent of a 401K is contribution verses appreciation over a standard 40year or so term. That way I can really crunch the numbers on whether its better to invest privately or thru 401k Thanks!Edit: Follow up: since 401Ks are taxed as ordinary income, wouldnt I be better off investing privately to take advantage of the lower capital gains rate? And avoiding the other restrictionspenalties inherrrent to 401k. Is the only advantage if my employer matches?  <response>: Follow up: since 401Ks are taxed as ordinary income, wouldnt I be better off investing privately to take advantage of the lower capital gains rate? No. As income money going into a brokerage account has already been taxed when it was earned, it will then be taxed again as capital gains. Traditional 401ks allow you to get passed capital gains. 