E.M. Abramson
“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 Man...
Investing after-tax in an IRA and therefore being able to put money away for tax-deferred growth, can benefit retirement savings. Similar to your 401(k), you can structure the account to invest in anything you want. You don’t need to be mindful of the impact on your annual taxes of ...
You're reimbursed for those funds with a tax deduction when you report your IRA contributions, which effectively makes your contribution "pre-tax." How do I know if my 401(k) contributions are pre-tax? Due to the nature of 401(k) plans, you can always expect that your contributions ...
After-tax contribution refers to the monetary contribution made to retirement systems after deducting taxes from the individual’s or corporation’s taxable income. In the U.S., there are two main types of after-tax contributions – the traditional after-tax contribution and the Roth 401(k) aft...
Should You Convert to a Roth IRA? Millions of Americans are saving for retirement in 401(k)s and Individual Retirement Accounts (IRAs). These accounts allow people to invest pretax dollars,... P Villarreal 被引量: 0发表: 2010年 401(k) Plans: New Type of After-Tax Contributions The arti...
Define after-tax. after-tax synonyms, after-tax pronunciation, after-tax translation, English dictionary definition of after-tax. adj. Relating to or being that which remains after payment of taxes, especially of income taxes: after-tax profits. American
A:Tax-deferred compounding has always been a benefit to making aftertax IRA contributions. Under the new regulations, however, investors can effectively steer more assets into the Roth column than they otherwise could by converting their aftertax 401(k) contributions into a Roth IRA. Once the ro...
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...
The transfer is tax-free for the paying spouse. It effectively provides them with a deduction because they are giving away money that they would have had to pay taxes on eventually.2122 In addition, the transfer of the IRA funds is tax-free for the receiving spouse. Moreover, they would ...