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Is It Possible to Convert a Pre-Tax 401(k) Account to a Roth Account?

DWC 08/6/19
Facts We recently had one of the participants in our 401(k) plan ask if it is possible to convert her balance from pre-tax to Roth.  She has been a participant in our plan for many years and has both her own deferrals as well as company contributions (both match and profit sharing). Based on her current financial situation, she believes it would ...
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After-Tax vs. Roth Contributions: What's the Difference?

DWC 06/19/18
Facts Our company has a 401(k) plan that provides a matching contribution equal to 100% of the first 4% that each employee contributes.  We set it up that way to ensure that our highly compensated employees (HCEs) can maximize their salary deferrals at the limit (for 2018 the limit is $18,500 for those under age 50 and $24,500 for those age 50 or ...
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What Are The Different Types of 401(k) Contributions And How Do They Work?

DWC 03/27/18
Facts Our business is considering setting up a 401(k) plan for our employees. We know that it can include both employee contributions and company contributions, but we keep hearing about all sorts of other contributions. There are profit-sharing contributions, matching contributions, qualified nonelective contributions, and Roth contributions.
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DWC in Kiplinger: Leveraging a Backdoor Roth IRA

DWC 12/28/17
If Roth IRAs offer a legitimate long-term savings strategy by allowing people to generate tax-free income, why do less than a third of IRA investors have such an account? The short answer is income limits; taxpayers above certain levels can't invest directly into a Roth IRA.
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The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.