UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: bananaman8 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Exceeding 401k Annual Limit Date: 4/27/2001 10:35 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Can anyone help me out with the following?

If I exceed the annual $10,500 limit in my 401k contributions (say $11,000) I understand I will pay income tax on the $500 in excess. But does anyone know if that $500 will still grow tax free, like the rest of the 401k? If so, shouldn't we be encouraged to contribute any additional monies we have to 401k rather than stick it into a separate long term growth account that has no tax advantages? While you still have to pay taxes on the income, at least the investment grows tax free.

Thanks for any help.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement