Joe Doakes - You are obviously correct about the many, many differences between bonds and 401k's and my earlier post was inarticulate when I said: "this is the difference between the 2 instruments"....

I had intended to imply that the difference (when related to nologic's question), related to the ability to reduce current income with contributions to an IRA, which is not available on bonds. My earlier post was also 'intended' to indicate that bonds do in fact, compound tax-free, like a 401k, which was what I understood nologic's question to be.

Mea culpa if others interpreted my poorly worded answer in terms of the differences between the instruments......there are clearly many differences between them as you've ably pointed out.

Best wishes.