Pre-tax and Roth (after-tax) contributions are two different types of contributions that can be made to retirement accounts such as 401(k)s and IRAs.Pre-tax Contributions: Pre-tax contributions are made with money that has not yet been taxed. The money is taken out of your paycheck ...
“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 more money away now so you can maximize a tax-efficient retirement bucket later.” - David Britton, Senior Wealth Planner, U.S. Bank Private Wealth Managem...
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 ...
If you haven’t already funded your retirement account for 2024, you have until the tax return filing due date to do so. 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 filin...
We ended up not being eligible for a Roth IRA this year, but if I was a candidate I think I would take advantage of this idea. In the long run, even stuffing another $1,000 in a Roth could save alotof money in taxes. * More information on correcting excess contributions in thisI...
In addition to my pension, I have a managed 457, which is essentially just like a 401k account. It's an account that I put money in. Our new union contract now stipulates that my department will match up to 3% of my contributions, so yay for that. Free money. A...
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Last, Uncle Sam wants you to save in your 50s. How do I know? Take a look at catch-up contributions. At age 50, you can put an extra $6000 into your 401K, 403B, and 457 and an extra $1000 into your personal and spousal IRA (or for most docs, backdoor Roth IRA). ...