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February 3, 2025
Question

Did you make after-tax contributions to a 401(k), 403(b), or 457(b) plan?This isn’t common but this is money you put in the plan yourself, not from your company.

  • February 3, 2025
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    February 3, 2025

    Let me see if I can explain what you are reading here.

     

    Normally your 401-K or similar employer pension plan would be handled by your employer, in which case money would be taken out of your pay to contribute to the plan. Your employer would often match a portion of your contributions. Both of these contributions would be "pre-tax" which means they would be paid from income you earned that would not be reported as taxable on your W-2 form. It would be rare for the employee to make additional contributions to the plan from income that was taxable to the employee. 

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