After-tax contributions to 401k?

[youbet]

Yeah, the paperwork is easy. I did it. But you have to keep copies of every year you filed the form. Indefinitely (or at least it seems so!) That part is a real pain.

Audrey

Everythings relative I guess. It's simple and quick to fill out the forms and each year only refers back to the prior year's form.....not all prior years forms, so keeping copies beyond the copies you'd keep of taxes anyway is unneccessary.

My only point is....... if someone calculated that doing non-deductible IRA's was smart for them financially, but didn't do them because they thought the paperwork was a big pita, that would be a huge mistake! The paperwork isn't a huge pita.

 

[scholhc]

After tax contribution limits:

In addition to the pre-tax or tax-deferred contributions you can make to your 401k plan, your plan may also allow employees to make after tax-contributions. When after-tax contributions are added to pre-tax contributions, this becomes your total 401k contribution - which also has a limit.
In 2008, the total that can be contributed to a 401k plan is $46,000 or 100% of your compensation - whichever is less. In 2009, this total 401k contribution limit will be indexed to inflation and can move up in $1,000 increments. In 2007, the total that could be contributed was $45,000.