401K catch-up contributions?

[plattj1]

There was an earlier thread concerning after tax contributions to a 401K and the majority opinion was negative. I am currently making catch-up contributions to my plan since I am in my 50th year. I did not want to hijack that thread so I thought I would start a new one.

Are catch up contributions treated as after tax contributions? So far is looks like everything is being reported on the same line.

Thanks for any help,

JP

Only 4 years, 11 months and 18 days to go... but who's counting

 

[Martha]

Nope, they are pre-tax.

So, for 2006 if you are 50 or over this year, you can put in up to $20,000 pretax.

 

[MasterBlaster]

That's a real nice avatar Martha

 

[Helen]

I've decided not to do the catch up portion of the 401k. I will turn 50 next year. I plan on contributing the catch up on my Roth. The rest is going to my after tax account in I Bonds. I will sell the I Bonds when I retire at 56 and live off them untill I'm 60. At that point I'll start collecting my pension.

The downside to deferring the pension is that I will have to fund my own health insurance until I start to draw the pension. When it gets closer to retirement I'll have to start researching my options. I had an aneurysm and I have a vestibular disorder so I have some pre existing conditions.

 

[Texas Proud]

I turn 50 next year... and will start the catch up in January... I can not put into a Roth, but I don't think I would do it there anyhow as the tax advantage is better than the deferred income..


edit age... duhhhh

 

[Outtahere]

I started the catch up as soon as I was able, it's the only tax deferred spot for me to park money and I'm considered highly compensated so my contributions can be limited by employee participation, the extra 5k helps a lot.

 

[Callie]

Both hub and I max out with the makeup at 20K. It's great.

 

[d]

related ... anyone have a clue what the new max (including catch-up) will be next year?

 

[Martha]

No announcement yet on next year's cap.