401-K Taxed ?

you mean trillions, cog.

doesn't matter, no amount of taxation could actually pay our debts back. there's only one option: shrink it. which means you're going to lose value in your savings no matter what.

There is absolutely nothing in the legislative pipeline at the moment. IMO, a tax on any plan balance is never going to happen. The more likely scenario is increased tax rates in the future which would affect 401(k) withdrawals, not the balance. The impact of increased future tax rates on each individual will depend on the structure of rates at that time, when withdrawals commence and the level of withdrawals. Often times the media refers to potential future tax hikes as "shrinking your 401(k) balance," which is another way of referring to erosion of after-tax purchasing power. Keep funding your 401(k) to max employer contributions. Then tax diversify with a Roth and capital investments to cover all bases. PMs are part of that last category for those so inclined. Hang in there. The dollar ride should be interesting the next few years.

I was shocked when I moved to PA that the 401K contribution was taxed by state and local government.

The government is actually getting a nice windfall this year due to the Roth IRA conversion rule. Regardless of AGI, this year, you can convert a 401k over to a Roth IRA. Many rich folks are taking advantage of this which results in a fairly big windfall for the feds since the whole converted balance is taxable (but won't be taxed again since it is moving into a Roth)