What is an after-tax 401(k) contribution? After-tax 401(k) contributions are post-tax dollars you invest in an employer-sponsored 401(k) plan above and beyond your annual effective deferral limit. “Making after-tax contributions into your 401(k) to be later rolled over into a Roth IRA...
January 24, 2025 Estate Planning What is a Stepped Up Basis? Cost Basis of Inherited Stock and Other Assets A step-up in basis is a tax advantage for individuals who inherit stocks or other assets, like a home. A stepped up basis can apply ...
Over time, future contributions will save you thousands, depending on your contribution, income tax bracket, and the number of years you keep the money invested. 2. Make a last-minute estimated tax payment If you didn’t pay enough to the IRS during the year, you may have a big tax ...
Example Scenario Sometime in early 2008 you contributed $5,000 to your Roth IRA for the 2008 tax year. At the time, your IRA was worth $20,000 in total after the contribution. Now, in January 2009, the entire IRA is now worth $15,000. You first “undo” your 2008 $5,000 cont...
and your withdrawals will not be taxable, to the extent your medical bills exceeded 7.5 percent of your income, provided your contributions have been in the account for at least five years. Your 401k plan may have rules that allow you to take a taxable in-service withdrawal. Some 401ks wi...