在介绍backdoor的两步操作时,我们提到两步的时间间隔应尽量短,否则会产生pre-tax earning,在rollover至Roth IRA后,取出时受制于5年规则,详细分析见Roth IRA 五年规则与取钱顺序。 因after-tax 401(k)与(non-deductible) tradtional IRA的属性相似,mega backdoor也是减少pre-tax earning为佳,这要求在第一步完成...
After-tax contributions can be withdrawn tax-free, provided that certain conditions are met, such as reaching the age of 59.5 or meeting the Roth IRA’s five-year holding period. Understanding the rules and limits surrounding after-tax contributions is crucial to maximize the benefits they can p...
Your tax bill isn't chiseled in stone at the end of the year. Here are 10 tax tips and steps you can take after January 1 to help you lower your taxes, save money when preparing your tax return, and avoid tax penalties.
What-if question... I have a rollover IRA account that accumulated pre-tax balances from old 401Ks. At the same time I never contributed after-tax money to a traditional IRA. Would it be beneficial to open and contribute to after-tax IRA to start lowering the future tax rate on withdraw...
Specifically, the potential use of after-tax 401(k) contributions during employment to create a Roth IRA conversion strategy at the time of separation is compared to a more traditional retirement savings strategy of solely utilizing pretax deferrals. Through the use of tax and growth rate ...
After this step, if you’re looking to save more, ask if the after-tax contribution is available for your 401(k) plan. “The limits of how much you can contribute after-tax might vary across plans,” Dudley said. You may also want to see if theIRA rolloveris an option. ...
You may be able to lessen the impact of the pro-rata rule by reducing the amount of pre-tax IRA dollars by year-end. This is calledisolating the basis. If you have access to a workplace plan such as a 401(k) and reverse rollovers are permitted, you might consider rolling pre-tax ...
After-tax contribution refers to the monetary contribution made to retirement systems after deducting taxes from the individual’s or corporation’s taxable
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...
And you won’t even have to amend and refile your tax return. Roth IRA Contribution Limits Of course, you still have to obey the generalRoth IRA contribution rules and limits. For 2023 you can contribute up to $6,500 a year ($7,000 for 2024) or $7,500 ($8,000 for 2024) if ...