第一步与前者相同,第二步的目的地变成了Roth 401(k),这是一种in-plan Roth rollover(同一个401(k) plan中向Roth 账户进行的rollover)。若401(k) plan允许after-tax 401(k)进行in service distribution,那么第二步中进入Roth 401(k)中的资金会被标记为otherwise distributable amount(相应的Roth 401(k) elec...
Pre-tax vs Roth 401k contributions - both types of plans have advantages and disadvantages depending on your view on future taxes.
What if you’ve contributed the maximum amount of pre-tax (and/or Roth) dollars to your employer-sponsored 401(k) plan, but you still want to grow this fund for retirement? “In some cases, it’s possible to make after-tax 401(k) contributions beyond and outside of your pre-tax and...
Leave your 401(k) with your old employer.This can be an easy short-term option. Your old employer is obligated to continue managing the money and provide communications just as they have in the past. You can change your mind later and transfer your 401k to your new employer or a di...
Ways to invest after maxing out a 401(k): brokerage account, traditional IRA, or Roth IRA. For high earners with excess cash, a brokerage account is likely the best option.
That’s the deadline for contributions to a traditional IRA, deductible or not, and to a Roth IRA. If you have a Solo 401k, Keogh or SEP and you get a filing extension to October 15, 2025, you can wait until then to put 2024 contributions into those accounts. To start tax-free ...
The 401(k) is one of the largest retirement platforms in America, and for good reason. It allows you to invest your hard-earned salary tax-free upfront. Then, you pay taxes as you take money out in retirement. These tax benefits cause a compound effect. It allows you to plow more mo...
Ryan – the HUGE tax savings is the $1250 that will grow and be withdrawn tax free instead of at whatever the current and future rates are (assuming it was invested in a taxable account instead of a Roth)… that can save a nice bit of money....
HOWEVER (and there’s always a however in life, don’t ya know) – if you rollover the 401(k) first (or during the same tax year) and then convert the $40,000 to Roth, you will be taxed on$30,000of the conversion. This is because, now that you’ve rolled over the 401(k) ...
As a trusted advisor, you have an opportunity to clarify what happens to this money when it's withdrawn. A high-level review of401(k) taxationand suggesting strategies for RMD funds, like putting them in aRoth IRA to grow tax-free, can go a long way toward easing your client's concern...