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after-tax contribution
Old 01-16-2012, 07:36 PM   #1
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after-tax contribution

Looking for the information.
Do I have to pay “early withdrawal penalty” for the after-tax contributions?
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Old 01-16-2012, 08:01 PM   #2
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After-tax contributions to what?

It is generally unwise to make after-tax contributions to a retirement plan unless it is a Roth IRA.
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Old 01-16-2012, 08:07 PM   #3
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I made after-tax contributions to 401k managed by Fidelity. Now I need money and have to take it out.
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Old 01-16-2012, 08:13 PM   #4
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Yes, early withdrawal penalty applies if you are under 59.5 or if still employed and not retired at age 55.

How about a 401(k) loan?
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Old 01-16-2012, 08:36 PM   #5
Confused about dryer sheets
 
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I am unemployed and under 59.5.
The amount of my after-tax contributions will be tax free. I must pay 20% tax only on earnings This part is clear for me. The next part is 10% penalty. Do I have to pay 10%? I hope I don't need to, but I can not find information. Thnks
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Old 01-16-2012, 10:30 PM   #6
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Not sure if my experience is relevant or can help you, but when I ERed and left my job in late 2008, I had to liquidate my 401(k) because it included company stock. Part of my 401(k) included after-tax contributions I made in the mid-1990s before the Roth IRA was invented which I was able to specifically separate out and take as cash (even though I was well under are 59.5). Had I still been working there, I would not have been able to do this, being able to only take out a prorated amount of principal and earnings, the former not taxable and not subject to penalties and the latter taxable along with any penalties.

As a result, the money I took out of the 401(k) as cash was taxed either not at all or very little while the pretax dollars and all earnings on the pretax and after-tax contributions was rolled over into my own TIRA.
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Old 01-16-2012, 11:13 PM   #7
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This suggests that you pay tax but not penalty on earnings
Differences between 401k Pre-Tax Contributions & After-Tax Contributions
Perhaps you should check w/ your HR dept.
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