after tax contributions to 401k
I currently max out on a before tax basis in my 401k and I’m self employed. can I deposit money after tax into the plan (assuming it allows) and then transfer that after tax money to a ROTH once per year or is it subject to rules that might prohibit it based on income or discrimination testing etc…??
Permalink Submitted by Alan - IRA critic on Thu, 2018-06-21 22:43
If the plan allows after tax contributions and you are sure that the amount of these contributions are fully permitted considering other eligible employees, the annual additions limit etc, and also that distributions are allowed, you can do the direct rollover from the after tax sub account to your Roth IRA.
Permalink Submitted by Shawn Danziger on Fri, 2018-06-22 12:40
can you direct me to more details about rules? so my understanding is that because there are employees in the plan, I would be subject to contributing for them too possibly?
Permalink Submitted by Shawn Danziger on Fri, 2018-06-22 12:41
can you direct me to more details about rules? so my understanding is that because there are employees in the plan, I would be subject to contributing for them too possibly?