Talk:After-tax 401(k)

I am not really comfortable titling this topic "After-tax 401(k)" UNLESS a clear explanation is made that this is a colloquial expression used to describe many qualified retirement savings plans in which the employer has arranged for after-tax contributions that are SUPPLEMENTAL to the "official" 401(k) portion of the plan. Strictly speaking, the additional after-tax contributions between the $17,000 401(k) limit and the $50,000 415(c)(1)(A) limit (in 2012) do NOT go into the 401(k) portion of the savings plan. They go into a supplemental retirement savings plan. Unless we use very clear language here, the unwary reader may erroniously conclude that every employer which offers a traditional 401(k) plan must ALSO offer the supplemental savings plan. To my knowledge that is not true.

It would also be useful to note that the age 50+ "catch-up" contributions increase BOTH the $17,000 401(k) limit as well as the $50,000 415(c)(1)(A) limit. With a little effort I'm sure I could find a direct IRS reference for that. ThePrune 20:57, 15 February 2012 (CST)


 * I agree with ThePrune. The article assumes an "after-tax" 401(k) account is to be used for a specific purpose. This is confusing, as my after-tax 401(k) contributions are tracked with no specific purpose in mind. There is no further sub-account available.


 * Please supply credible sources to justify the opinions stated. You are encouraged to continue developing the article, but please bear in mind that content must adhere to the guidelines presented in Basic help.

--LadyGeek 21:18, 15 February 2012 (CST)


 * Thanks for the feedback. I think a separate topic is appropriate, because the rules on in-service distributions and contribution limits are different and to prevent confusion with Roth 401(k)s. ThePrune, I plan to follow the language on the 401k topic, where it alludes to this through "An employer may also elect..", and then urge the reader to view their SPD. I don't think either topic covers triggering events/SPDs, and would like to contribute. Lastly to your point on strategy vs. account type, I've re-read livesoft's criticisms of using the account for its intended purpose, and plan to borrow many of the bulletpoints.

--Gsmith 16:51, 17 February 2012 (CST)