After Tax 401(k) contributions – Can be made early in year?
Do you have to make all your pre tax 401(k) contributions before you can make after tax contributions? Can you so some of both?
Thanks as always …… Mary Dean
Do you have to make all your pre tax 401(k) contributions before you can make after tax contributions? Can you so some of both?
Thanks as always …… Mary Dean
Permalink Submitted by Alan - IRA critic on Sat, 2022-01-29 00:14
That’s a plan specific determination.
Permalink Submitted by William Tuttle on Sat, 2022-01-29 14:52
Originally, when the 401k employee after-tax contribution feature was available in a plan. It was only an election to make those contributions after you reached the employee deferral limit.
In the prior decade, 401k plans started offering employee after-tax contributions as a per pay period percentage election just like 401k traditional/Roth deferrals.
After IRS Notice 2014-54, many 401k plans started offering an in-plan Roth rollover (IRR) and/or in-service rollovers to a Roth account. This combination is the so-called Mega Backdoor Roth.
If you have an online employee 401k portal for making contribution elections. If employee after-tax contributions are supported, there should be an option.
As Alan pointed out, your best source of detailed answers on how your specific 401k plan works is your employer and/or 401k plan administrator.