Post-tax 401(K) contributions

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idlebrain
Posts: 7
Joined: Fri Dec 08, 2017 3:12 pm

Post-tax 401(K) contributions

Post by idlebrain »

Hello,
I made around $8500 contribution for employer sponsored 401(K) plan for the year 2018. (Not including matching contribution from employer).
This is all pre-tax $$$. Now since the 401(K) contribution limit for 2018 is $18,500, can I contribute balance $10,000 into 401(K) with my after-tax $$$ and claim tax deductions while filing tax returns?
Appreciate your replies.
codedude
Posts: 69
Joined: Thu Jan 26, 2017 9:15 pm

Re: Post-tax 401(K) contributions

Post by codedude »

idlebrain,

No, you cannot contribute towards the 2018 limit now.
nolesrule
Posts: 1690
Joined: Thu Feb 26, 2015 10:59 am

Re: Post-tax 401(K) contributions

Post by nolesrule »

401k contributions for a specific year can only be made from payroll deductions within that calendar year. Contributions cannot be made outside of payroll deductions.
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Earl Lemongrab
Posts: 7270
Joined: Tue Jun 10, 2014 1:14 am

Re: Post-tax 401(K) contributions

Post by Earl Lemongrab »

Besides what was mentioned, a couple of other things need to be clarified.

1. The 18.5k (19k for 2019) limit has nothing to do with it. That is for pretax (deferral) or Roth contributions. If the plan allowed after-tax, then it doesn't take up any of that space. You could contribute all that the plan allows up to the plan max of 55k/56k.

2. After-tax contributions are not tax-deductible. You wouldn't lower 2018 taxes. The value of after-tax is being able to convert to Roth with minimal taxes.
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