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You can convert to Roth after leaving (sometimes in service distributions allowed, as at BCG), effectively tripling your Roth eligibility
Called a mega backdoor Roth- Google it
Oops- sorry, for us it's capped at 10% of gross- good point on the 10k
Should be all
I believe the law stipulates 401k treatment must be uniform across all employees of a company
1. Ability to defer taxes on earnings until withdrawal
2. Potential ability to avoid taxes on earnings (see mega backdoor Roth above)
3. Potentially access to better, closed, or lower cost investment options than you would get as an individual (e.g Vanguard institutional and admiral shares)
Worth noting, the total of your contributions to 401k, your employers contributions, and your contribution to after tax plans cannot exceed $55k for 2018.
If after tax contribution is allowed why have a 10K limit?
Following
D1- it's capped at 10% of your gross... for higher income folks that could bring you up over the 55k theoretically
Makes sense if it’s 10% since that would bring most of us to the max contribution limit but OP mentioned 10K, which seems odd & arbitrary
Hopefully some ACN 🐠 will clarify and throw more light? 1) 10k vs. 10% gross 2) in service distributions allowed or not.
Negotiating an offer so very interested to know.
What levels are eligible for the after tax contribution?
It is a 10k limit for all US employees according to the ACN benefits site. It is eligible for Roth conversion but no company match
Eligible for in service distributions as well