|
The Motley Fool Discussion Boards
|
Previous Page | |
|
Financial Planning / Foolish 401(k)s |
||
|
URL:
https://boards.fool.com/you-can-have-after-tax-money-in-401kira-it-can-34125425.aspx
|
||
| Subject: Re: Overpaid 401k 's | Date: 2/2/2019 4:37 PM | |
| Author: kitsapkidd | Number: 26211 of 26340 | |
|
You can have after tax money in 401k/IRA. It can be claimed as After Tax & does not get taxed twice. You have to keep track of those funds thru IRS F-8606 when withdrawn. Here's what I did when I had AT funds in 401k: When I converted the 401k to an IRA, I took the after tax funds as distribution(s) so then the IRA had no AT funds in it. It's just additional paperwork ya gotta file & calculate every year to claim the AT funds so you AREN'T taxed twice on it. I'm probably missing a step or 2 (Pub & Instr) but my point is, you can have AT funds in pre-tax retirement accounts AND it can be claimed as AT so you don't pay tax on it again when distributed. |
||
| Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us | ||