With the addition of MyLifeNow mobile enrollment, participants can now enroll in their plan, enroll in automatic increase, and adjust their pre-tax, Roth or after-tax contributions
, as well as view their account balances, personal rate of return, and investment allocations.
Disbursements containing both pretax and after-tax contributions
may be treated as a single distribution.
In 2006, the Roth 401(k) was introduced as a way for Americans to make after-tax contributions
to their 401(k) plans.
For example, if 40% of the converted amount reflects after-tax contributions
and the client is in a 28% tax bracket, then only 60% of the amount being converted is taxed.
7) Conversions of after-tax contributions
from a traditional IRA to a Roth IRA are not includable in gross income, since they previously have been taxed.
The amount of the rollover would be includible in taxable income except to the extent it is the return of after-tax contributions
Rollover contributions and voluntary after-tax contributions
are not employer-provided benefits, and the restrictions on in-service distributions are not applicable to those types of accounts.
The IRA is a rollover from the qualified plan of a current or former employer with no after-tax contributions
Also, if a super fund member doesn't supply their TFN, super funds are unable to accept any after-tax contributions
An advantage to making after-tax contributions
is knowing what the tax risk is.
The act expands the rollover options for after-tax contributions
so that such contributions can be rolled over from one qualified retirement plan to another, to a tax-sheltered annuity (403(b) plan) or to an IRA.
1 have monthly after-tax contributions
taken from my checking account and deposited into the 529 plans.