401(a) funding in a 401(k) | Financial advisors for engineers and executives

Описание: Welcome to today’s episode! At AdviceOne, we want to help you maximize your retirement savings by exploring how 401(a) funding works inside of a 401(k). Most people are familiar with pre-tax contributions in a 401(k), but fewer realize the benefits of after-tax contributions through a 401(a).

Here’s what we’ll cover:

Pre-tax vs. After-tax Contributions: The limit for pre-tax contributions is $23,000, or $30,500 if you’re over 50. But if your 401(k) plan allows it, you can contribute additional after-tax funds through 401(a).

Why Contribute After-tax? After-tax contributions can be moved to a Roth IRA at a later date, offering significant tax advantages in retirement.

How to Contribute: You can either elect to make after-tax contributions directly, or once you hit the max on pre-tax contributions, all additional funds could flow into after-tax automatically.

Maximize Your Contributions: The total contribution limit for 2024 is $69,000, or $76,500 if you’re over 50, meaning there’s a lot more room to save than most people realize!

Find out if your 401(k) plan allows for after-tax contributions, and let us help you make the most of this important option.

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The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.