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0

No. Only your contribution counts to the limit. What they contribute is affected by their limit and their rules.


29

The limit of $19,500 (plus an additional $6,500 for those 50 and over, for a total of $26,000) only applies to employee pre-tax contributions to Traditional 401(k) and employee contributions to Roth 401(k). It does not apply to employer contributions nor to after-tax contributions to Traditional 401(k) (the latter is the basis for the "mega-backdoor ...


2

One way to do this is to set up a trust, and then have the 401(k) beneficiary be the trust. You would have to make sure that the 401(k) administrator allows the beneficiary to be a trust. Setting up the trust costs money, but one advantage of the trust is that you could have more complex rules in place beyond those offered by a 401(k). You would have to keep ...


0

If the 401(k) distribution was during a time when they were West Virginia residents, then I believe it would be taxable by West Virginia. I believe that they may be considered West Virginia part-year residents, since they moved out during the year. If the 401(k) distribution was during the part of the year when they were West Virginia residents, then I think ...


1

Can an employer just put $500 into my 401k to avoid taxes and the IRS is OK with that? The company I work for, and the company my spouse works for, put the profit sharing directly into the 401(k). It counts as a company contribution not as part of the employee contribution. There are zero income taxes, and zero FICA removed from the contribution. If not, ...


1

Can an employer just put $500 into my 401k to avoid taxes and the IRS is OK with that? You can typically designate a portion of bonuses and other irregular income to go to your 401(k), which is perfectly acceptable so long as you don't exceed annual contribution maximums. I don't know if you'll be able to do it after the bonus is paid out, though. Check ...


6

Is this actually a 401k match from the employer or some sort of glitch? Neither - it's identifying the source of the units that are paying dividends (note the the column header). Half of your 0.665 units of the FID 500 Index were provided via your PRE-TAX contributions, and the other half was provided by the SAFE HARBOR match. If you are fully vested in ...


12

Some institutions enforce the limits, some don’t. However, one aspect that you may not realize is that they really don’t know what your contribution limits are. Lots of things affect your contribution limits. For the HSA specifically, your limits can be reduced if you are only eligible for part of the year, or if you have another HSA account that you are ...


4

Why are excess HSA/IRA/401k/etc contributions allowed? Sometimes they aren't allowed, e.g. Vanguard makes sure that the customers don't over-contribute to IRAs: So it depends on how good/bad your financial institution is. Also note that they can't check whether you over-contributed if you have other accounts at other financial institutions.


3

What am I doing wrong in my calculation? You're not considering the timing of all of those activities. If your contributions all happened at the beginning of the year, then you'd need a lower return to get a change in market value of $8,334 than if they all happened at the end of the year. Your calculation basically calculates the return of the initial ...


-1

You can check this yourself on your pay stub. You have various items on your stub that are deducted from your gross pay. The result is your net pay. You will find that some items reduce your taxable income. Some companies delineate the two by making separate lists, or putting a code or an asterisk next to the items that reduce your taxable income. They ...


14

Yes, all of the deductions you mentioned are outside of the itemized deductions, so participation reduces your taxes even if you elect to take the standard deduction. Items that are deducted from your paycheck by your employer, such as 401(k) contributions, payroll HSA contributions, or FSA deductions do not show up on your tax return at all. Your employer ...


7

Yes to all 4. Assuming you contribute through your employer's payroll, Traditional 401(k), Health Savings Account (HSA), and Flexible Spending Account (FSA) contributions are deducted from federal wages on your W-2. Traditional IRA is an above-the-line deduction, which means you don't have to itemize to benefit. In practice, it works out the same as a ...


1

tl;dr: The only possible reason to prefer after-tax is answered by OP in another question from years ago. To answer your title question: Is there any upside to contributing to the after-tax 401(k) instead of the Roth 401(k) via paycheck deduction? No*. In fact it's the opposite. It's the same concept as after tax contributions to a Traditional IRA. There ...


1

To understand the after-tax option you have to go back to at least the 1980s. At that time there were no Roth IRA's let alone Roth 401(k)s. When a new college graduate opened their first retirement account with their company, you had two basic choices: put money away pre-tax, but not be able to touch it without severe penalties until you are 59.5; or put ...


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