Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: goody14 Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: TSP/401K Lump Sum Question Date: 2/11/2006 5:36 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
To my understanding, as of January 2006, the Government has removed all monthly contribution limits on the federal 401k or "Thrift Savings Plan." Apparently, my entire biweekly paycheck, up to an annual total of $15,000, can be deposited. There is also a provision allowing for lump sum deposits. If I understand correctly, I can either put in the monthly pretax contributions or do one or a number of lump sum deposits. If I were to choose the lump sum route, which would assumingly come from after tax monies, is there any way of making back that money that was taxed? The way I see it, seeing of how the benefit of the TSP/401k/Traditional IRA is that contributions are pretax, shouldn't there be some way of making the aftertax lump sum payments have the same benefit? Is there a way to account for this on my tax return?

thanks in advance
goody14
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
TMFDeej's CAPS Blog

Name of the Game: Tax Avoidance
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