An after-tax 401k is a special type of 401k contribution that allows you to add additional "after-tax" money into your 401k account. Most long-term investors realize there aren’t too many ...

A Roth 401(k) has after-tax contributions and tax-free withdrawals during retirement. 401(k) withdrawals before age 59½ may be subject to early withdrawal penalties.

After-tax 401(k) contributions can make sense for certain people, but it's important to first make sure you're eligible and then weigh all other options before doing so.

An after-tax 401(k) may sound like it’s a Roth 401(k), which also uses after-tax money, but don’t confuse the two. The Roth 401(k) offers different tax advantages. After-tax 401(k) contributions ...

The new rules are all spelled out in Notice 2014-54.Example 4 says it all. The employee’s 401(k) balance consists of $200,000 of pretax amounts and $50,000 of after-tax amounts (it does not ...

How the after-tax 401(k) contributions are accounted for got a little less confusing thanks to an IRS ruling last year. How after-tax 401(k) money is treated. Share. Resize. Skip to main content.

An example of how this works: If you earn $50,000 before taxes and contribute $2,000 of it to your 401(k), that's $2,000 less you'll be taxed on. When you file your tax return, you’d report ...

There are ways to lower the taxes you pay on a 401(k) — but, before using any of these strategies, ... and save on taxes.” 3. Convert your 401(k) after retirement.

Few tax breaks are bigger than what's available to those who have 401(k) plan accounts at work. In addition to the tax deferral that they offer, many employees get employer matches for the money ...

These are not tax-deductible like your regular 401(k) contributions, but you can make after-tax deferrals beyond the annual 401(k) contribution limit. Plus, the earnings from these extra ...

First, you breach your pre-tax 401(k) contributions to get the biggest tax deduction you can get in 2021. Next, you aim to reach the $66,000 limit with your after-tax contributions.