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...
Relatively small annual contribution limits If Roth assets are small relative to your entire portfolio, tax benefits may not be as meaningful Detailed look: Roth IRA The primary feature of a Roth IRA is that provided a five-year holding period is met since your first contribution and you’re ...
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.
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 contribution by follo...
And I just recently opened a Roth, completely independent, not associated with my department, just on my own accord just to kind of diversify some income streams when we do retire. Just to kind of change up my different tax advantages. So that is something new within t...
Now that SECURE has passed, as long as you have earned income, you can make contributions to an IRA (or Roth IRA), no matter what your age is. Like I said, nothing really earth-shattering about this, although it does give some taxpayers more time to make contributions to IRAs if they...