The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/what-are-the-pros-cons-to-contributing-after-13021652.aspx

Subject:  Re: 401k after tax, re-phrase Date:  7/28/2000  12:22 PM
Author:  dogbo Number:  23757 of 76418

What are the pros & cons to contributing after tax money to a 401K?

Pro's: earnings are not subject to taxes until distributed, addl protection against bankrupcy creditors (as opposed to IRA's)

Cons: you're limited to investment offers under your 401k plan. However, if you have a good assortment of offerings, then this may not be a "con".
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us