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someSome 401k plans allow you to make "supplemental post-tax contributions". basically, once you hit the pre-tax contribution limit (17.5k$ in 2014), you are then allowed to contribute funds on a post-tax basis. becauseBecause of this timing, they are sometimes called "spillover" contributions. usuallyUsually, this option is advertised as a way of continuing to get company match even if you accidentally hit the pre-tax limit. but

But if you actually pay attention to your finances, it is instead a handy way to put away additional tax-advantaged money. that That said, you would only want to use this option if you already maxed out your pre-tax and rothRoth options since you don't get the traditional tax brakebreak on contributions or the rothRoth tax brakebreak on the earnings. howeverHowever, when you leave the company, you can transfer the post-tax money directly into a roth iraRoth IRA when you transfer the pre-tax money, match, and earnings into a traditional iraIRA.

some 401k plans allow you to make "supplemental post-tax contributions". basically, once you hit the pre-tax contribution limit (17.5k$ in 2014), you are then allowed to contribute funds on a post-tax basis. because of this timing, they are sometimes called "spillover" contributions. usually, this option is advertised as a way of continuing to get company match even if you accidentally hit the pre-tax limit. but if you actually pay attention to your finances, it is instead a handy way to put away additional tax-advantaged money. that said, you would only want to use this option if you already maxed out your pre-tax and roth options since you don't get the traditional tax brake on contributions or the roth tax brake on the earnings. however, when you leave the company, you can transfer the post-tax money directly into a roth ira when you transfer the pre-tax money, match, and earnings into a traditional ira.

Some 401k plans allow you to make "supplemental post-tax contributions". basically, once you hit the pre-tax contribution limit (17.5k$ in 2014), you are then allowed to contribute funds on a post-tax basis. Because of this timing, they are sometimes called "spillover" contributions. Usually, this option is advertised as a way of continuing to get company match even if you accidentally hit the pre-tax limit.

But if you actually pay attention to your finances, it is instead a handy way to put away additional tax-advantaged money. That said, you would only want to use this option if you already maxed out your pre-tax and Roth options since you don't get the traditional tax break on contributions or the Roth tax break on the earnings. However, when you leave the company, you can transfer the post-tax money directly into a Roth IRA when you transfer the pre-tax money, match, and earnings into a traditional IRA.

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some 401k plans allow you to make "supplemental post-tax contributions". basically, once you hit the pre-tax contribution limit (17.5k$ in 2014), you are then allowed to contribute funds on a post-tax basis. because of this timing, they are sometimes called "spillover" contributions. usually, this option is advertised as a way of continuing to get company match even if you accidentally hit the pre-tax limit. but if you actually pay attention to your finances, it is instead a handy way to put away additional tax-advantaged money. that said, you would only want to use this option if you already maxed out your pre-tax and roth options since you don't get the traditional tax brake on contributions or the roth tax brake on the earnings. however, when you leave the company, you can transfer the post-tax money directly into a roth ira when you transfer the pre-tax money, match, and earnings into a traditional ira.