After-Tax Contributions in a 401(k)

[Guest Denise S. Prince]

Are after-tax contributions to a 401(k) plan subject to 402(g) limitations? Can someone provide me with a reference because I can't seem to find a specific notation?

Thanks!

[david rigby]

No. 402(g) refers to the "... the elective deferrals of any individual for any taxable year..."

After-tax employee contributions are not made to a "401(k) plan", but can be made to a profit-sharing plan if such plan permits. That is, think of 401(k) as a special feature that a profit-sharing plan is permitted to have. After-tax contributions are another special feature that a PS plan may have.

[wmyer]

After-tax contributions are not subject to 402(g), as PAX said. They are subject to the 415 limit (40,000 for 2002) and to ACP testing.