you think pays more in taxes a twenty-year-old who probably is a minimum wage job or you know just starting at the very bottom of the corporate ladder or somebody who's sixty five and is making a lot more money well obviously the much older higher income person is paying more in taxes because they're in a higher tax bracket so if you think about it why would you fund a retirement account i'm talking about the four one k hear that as you're putting your money in and you're deferring your taxes to later in life so you're deferring your taxes to a point in time where you are going to be in the highest tax bracket that you're really going to be in in the course of your life so you're voluntarily paying more in taxes by deferring your taxes to later in life