All Mixed Up: If you roll over after-tax contributions to an IRA, beware the pro rata rule.(Individual Retirement Accounts)Slott, Ed
plan might also allow for after-tax contributions, which enable you to save even more for retirement. however, there are restrictions and potential disadvantages to be aware of when it comes to contributing after-tax dollars to a 401(k) account. when considering an after-tax 401(k) ...
Withdrawals of after-tax contributions to a traditional IRA should not be taxed. However, the only way to make sure this doesn't happen is to file IRSForm 8606. Form 8606 must be filed for every year you make after-tax contributions to a traditional IRA and for every subsequent year until...
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 would be a great strategy for you to put ...
Making pre-tax contributions to an IRA is a bit counterintuitive because you don't contribute funds from a special pile of "pre-tax" dollars that you have sitting around. Instead, you simply contribute funds from your normal bank account and take a tax break when you file your tax returns...
when one makes after-tax contributions to a retirement plan, one has already paid taxes on the contribution. As a result, one does not pay taxes on thewithdrawalson the plan made afterretirement. After tax contributions are made onRoth IRAsandRoth 401(k)s. See also:Pre-Tax Contributions. ...
after-tax Financial Related to after-tax:After-tax income,Profit After Tax af·ter-tax (ăf′tər-tăks′) adj. Relating to or being that which remains after payment of taxes, especially of income taxes:after-tax profits. American Heritage® Dictionary of the English Language, Fifth ...
retiree to effectively segregate the aftertax assets from the pretax monies at the time of rollover into an IRA. Pretax 401(k) assets--both pretax contributions and all investment earnings--can be rolled into a Traditional IRA, whereas the aftertax dollars can be converted into a Roth IRA...
you will still have to fund your IRA by the April deadline. Just as filing for an extension doesn’t change the due date of your tax payment, it also won’t alter the deadline for the year’s IRA contribution. Any contributions you make after April 15 can only count toward the curren...
Yet another point that you need to keep in mind as you plan your Roth IRA conversion strategy is the timing of the activities. This is especially true when you have after-tax contributions to your IRAs in addition to the growth on those contributions and the typical deductible contributions. ...