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Personal Investments • Re: Why companies don't allow post-tax 401k contribution?

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My employer started allowing this about 3 or 4 years (fidelity manages it). You had to call fidelity to set up the roll over to the Roth 401k (which took about a 5 minute phone call) and then I. The 401k selection field you had to select an after tax percentage

The limit per year last year was something like $19,000 (in addition to normal 401k contributions). You actually could contribute to a 401k Roth directly and put around $40k total you income in a Roth account

The money was taxed as ordinary income so all of the tax discussions in previous threads should note that (and honestly doesn’t that make sense?)

It was poorly communicated and most of the people at work were not aware you could do it or why you should do it. I put together a PPT to explain the advantages but I don’t think many people ended up doing it…

Statistics: Posted by loghound — Thu May 30, 2024 1:39 am



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