Guest buyertoday Posted April 16, 2003 Posted April 16, 2003 How do after tax 401(k) contributions work w/ regard to 402(g) and 415 limits? If I understand it correctly, the 402(g) limit (12K in 2003) refers only to pre-tax contributions. However, the total of pre-tax,post-tax, match and profit sharing cannot exceed lesser of 100% pay or 40K (in 2003)? Other than that, there is no other limit on the after-tax contribution. Is my understanding correct? Also, where is a good source of information on after tax 401(k) contributions? Thanks, Al
Mike Preston Posted April 16, 2003 Posted April 16, 2003 After-tax contributions are also controlled by the ACP test. I'm not aware of any specific write-up on after tax contributions, although I'm sure one exists somewhere.
david rigby Posted April 16, 2003 Posted April 16, 2003 There is no such thing as an "after-tax 401(k) contribution". Yes, the 402(g) limit refers to pre-tax contributions under 401(k). Be careful about 401(k)(4)(A). I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Mike Preston Posted April 17, 2003 Posted April 17, 2003 Be careful about 401(k)(4)(A). You are such a stickler.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now