“after-tax” 401k Contribution for future Roth conversion
Hello,
I recently learned about after-tax contribution possibility to a 401K plan.
I”m assuming that it’s different than Roth 401k.
Do all defined contribution plans allow ‘after-tax’ contribution maximum by default?
or how do we check if it’s allowed?
Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2020-09-11 20:51
There is no default offering. You will have to ask your plan administrator if the plan allows after tax non Roth “employee contributions”. Most large plans do and most small plans do not. You would also ask how often you can distribute (roll out) these contributions and their earnings to your Roth IRA or to the Roth 401k account in the plan.