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.

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 ...

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.

Contributing pre-tax dollars reduces today’s taxable income while allowing money to grow tax-deferred until retirement withdrawals begin. For 401(k)s in 2024, individuals can contribute up to ...

When after-tax assets in a retirement account are distributed, ... For instance, if your account includes after-tax balances accrued before 1986, these amounts may be distributed in full, ...

Focus on regular 401(k) deferrals first. Before making after-tax 401(k) contributions, you should focus on maxing out regular pretax or Roth 401(k) deferrals to capture your employer match, said ...

In-service withdrawals of pre-tax 401(k) funds are taxable and, if made before 59 ½, may be subject to penalty. A Roth 401(k) withdrawal that is a “qualified distribution” comes out ...

The catch is that your 401(k) plan has to allow for in-service withdrawals or distributions of after-tax contributions as not all plans do. Yet not all 401(k) plans have a Roth 401(k) option.

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.