What to do with after-tax 401(k) contributions
As the cost of living continues to rise and the economy becomes increasingly unpredictable, planning for retirement has become more important than ever. One of the most popular retirement savings vehicles is the 401k plan, which allows individuals to invest pre-tax dollars into a retirement account. However, many employers now offer an alternative option called the after-tax 401k, which allows employees to contribute additional funds beyond the traditional pre-tax limits. While this option can provide a valuable source of retirement income, understanding how to optimize an after-tax 401k strategy can be a complex task. In this guide, we will explore the benefits and limitations of the strategy, and provide valuable insights to help you optimize your comprehensive retirement plan.