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Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 93 (from laksa122)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa093.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.fidelity.com/viewpoints/retirement/401k-contributions\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.fidelity.com/viewpoints/retirement/401k-contributions\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.fidelity.com\/viewpoints\/retirement\/401k-contributions","crawl_time":1775856617,"first_indexed_time":1569264895,"http_code":200,"src_unparsed":"com,fidelity!www,\/viewpoints\/retirement\/401k-contributions s443","src_root_hash":"17952695050214760493","history_drop_reason":null,"meta_title":"After-tax 401(k) contributions | Retirement benefits | Fidelity","meta_descriptions":["Making after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That's a great benefit on its own - learn more here."],"attrs_boilerpipe_text":"What to do with after-tax 401(k) contributions\nThis strategy could make it worthwhile to keep saving above the annual limit.\nKey takeaways\nAfter contributing up to the annual limit in your 401(k), you may be able to save even more on an after-tax basis if your plan allows.\nEarnings on after-tax contributions are considered pre-tax and would grow tax-deferred until withdrawals begin.\nConverting after-tax 401(k) contributions to a Roth account is an option. After converting to a Roth, earnings can grow and be distributed tax-free if certain requirements are met.\nYou already know about the benefits of saving in your workplace savings plan, like a 401(k). But you may be able to save more than you think—for many people, the annual contribution limit isn't the end of their tax-advantaged saving opportunities.\nIn 2025, you can contribute up to $23,500 to your 401(k). Your contributions can be entirely pre-tax or Roth (if your plan allows for Roth contributions), or some combination of the two. If you're at least age 50 by the end of the calendar year, you can add a catch-up contribution of $7,500 pre-tax. And if you're between ages 60 and 63, you will be eligible to contribute up to $11,250 as a catch-up contribution, if your plan allows.\nUnlike Roth IRAs, there are no income caps on Roth contributions in a workplace savings account like a 401(k). Once you see that you will max out your contributions, you may want to consider making after-tax contributions if your plan allows. These are a third type of contribution to your workplace savings plan, in addition to pre-tax and Roth.\nOne quick note about after-tax contributions—you may not have to wait until you’ve hit the annual contribution limit during the year to make them. After-tax contributions can be made at the same time as your regular contributions—just be sure that your after-tax contributions aren't set so high that they will prevent you from fully making pre-tax and Roth contributions first. Check with your plan administrator if the rules seem unclear.\nBe aware also that there is an annual maximum limit on contributions from all sources—including your employer. As you’re calculating the amount you can contribute, include any matching or profit sharing\/non-elective contributions from your employer so that “free money” contribution doesn’t get crowded out.\nThe IRS allows a total of up to $70,000 of employer and employee contributions to be saved in a 401(k) for 2025, plus any age-dependent employee catch-up contributions. Here's what's included:\nWhat you save\nElective deferrals (either tax-deferred, Roth, or a combination)\nOptional after-tax contributions to your workplace savings plan beyond the annual elective deferral limit (if allowed by your employer)\nWhat your employer can contribute on your behalf\nEmployer matching contributions\nEmployer nonelective contributions, typically profit sharing\nSign up for\nFidelity Viewpoints\nweekly email for our latest insights.\nAfter-tax contributions to your workplace plan can be withdrawn without taxes or penalties. Any earnings on those after-tax contributions are considered pre-tax balances—so taxes would have to be paid on withdrawals of the earnings and there may be a 10% penalty if you're under age 59½.\nWhat you should know is that you won't be able to withdraw your after-tax contributions without also withdrawing any earnings associated with them. Taking out just the after-tax balance would not be allowed (unless they are rolled over to an IRA).\nLet's say you made $10,000 in after-tax contributions and that money earned $2,000 in returns. In order to withdraw the $10,000, the $2,000 in earnings would need to be withdrawn as well. And that applies if you are converting the after-tax balance as well (if you are converting in-plan).\nWith respect to federal taxation only. Distributions may or may not be subject to state taxation.\nPotential strategies for after-tax 401(k) contributions\nMaking after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That's a powerful benefit on its own—but that's not the end of the story. You could then go a step further and convert your after-tax contributions to a Roth account. There are a couple of different ways to accomplish that (if your employer permits), including rolling over your balances to an IRA or doing an in-plan conversion if it's offered by your employer along with a Roth option.\nWhen you convert after-tax balances to Roth, no taxes would be due on the conversion of your contributions. However, when you convert, you have to include associated earnings, which would be subject to tax. So, if the option is available to you, you may want to roll those earnings to a traditional IRA instead. That strategy is covered more in subsequent sections.\nEarnings in a Roth account grow and may potentially be distributed tax-free as long as certain conditions are met. So no taxes would be due on withdrawals—as long as they take place after age 59½ and the\n5-year aging requirement\nhas been met.\nSatisfying the 5-year aging requirement for the tax-free withdrawal of earnings means that there are at least 5 years between either the year of your first Roth contribution or the year the conversion took place and any withdrawals. The 5-year clock starts on January 1 of the tax year in which the conversion occurred or the contribution was made, no matter when during the year it actually happened. So if you converted in December, the aging requirement might, in practice, be only a bit more than 4 years.\nNot all employers offer a Roth option in their retirement plan—or they may not offer the option to do an in-plan conversion. If your employer does not offer a Roth option or the in-plan Roth conversion feature, you can still roll over your after-tax contributions to a Roth IRA. Here are the 3 strategies. The options available to you will depend on your situation.\n1. In-plan Roth conversion\nMany employers do offer a Roth option in their retirement plan. And some plans allow you to do an in-plan conversion.\nAn in-plan Roth conversion allows you to take after-tax contributions and convert them to Roth. Some employers even offer an auto-convert feature inside their plan. You can set it up so that any after-tax contributions are automatically converted to a Roth at regular intervals. Though after-tax contributions have already been taxed, any earnings associated with them have not—so converting earnings will trigger a tax bill in the year of the conversion.\n2. Rolling out to IRAs after an in-plan conversion\nAfter completing a Roth conversion within your workplace retirement plan, rolling out to IRAs should be relatively straightforward if you choose to do that. If you’re planning to roll the money out to a Roth IRA at some point and don’t already contribute to a Roth IRA, it may make sense to open an account and make at least one contribution now, if possible, so the 5-year clock starts ticking on this account. Roth 401(k)s have a 5-year aging requirement as well that is tracked separately from Roth IRAs. These rules don't need to be subsequently met again in the future, unlike Roth conversions, which have a new 5-year clock for each converted amount (however, the earnings follow the rule for either the plan or the Roth IRA).\nIf you earn too much to contribute to a Roth IRA, you do have options. Read\nViewpoints\non Fidelity.com:\nDo you earn too much for a Roth IRA?\n3. IRA rollover without an in-plan conversion\nYou can roll over after-tax contributions to a Roth IRA, and it is possible to do that before age 59½. There is a big catch, though: Not all plans allow withdrawals while you’re still with the company, and your retirement plan may have some rules around the requirements for rolling out of the plan. In-service withdrawals come with some potentially complicated rules, so it’s important to understand the rules the IRS has and those of your retirement plan.\nIn general, to roll after-tax money to a Roth IRA, earnings on the after-tax balance must, in most cases, also be withdrawn. You may have a few options.\nIf you have both pre-tax and after-tax contributions, you may be able to take a partial distribution from your retirement plan, consisting of just one or the other, if the plan separately tracks the sources of all of your contributions. In that case, you may want to roll out only the after-tax source balances directly into a Roth IRA.\nThe pre-tax contributions, along with the earnings from both the pre-tax and the after-tax contributions, can be rolled to a traditional IRA, incurring no current income tax.\nAlternatively, you can roll everything into a Roth IRA, but you would need to pay income taxes on the pre-tax contributions and all of the earnings.\nImportant note: Any partial withdrawals or in-plan conversions may affect eligibility for\nnet unrealized appreciation\ntreatment on appreciated employer stock held in the plan.\nIt's advisable to consult with a financial advisor before making any decisions.\nTo find out more, read\nViewpoints\non Fidelity.com:\nRolling after-tax money in a 401(k) to a Roth IRA\nBe sure to consider all your options\nMaking after-tax contributions and then converting to Roth may seem complicated, but the long-term benefits can make it worthwhile. But bear in mind: there can be benefits to keeping your money in the workplace savings plan. Balances in your workplace retirement account may be available for loans, if your plan allows them, while balances in an IRA are not. On the other hand, IRAs have certain advantages as well. For instance, you may be able to get a broader range of investment choices. So it's a good idea to check with your financial advisor and tax advisor before choosing a strategy.","attrs_markdown":"[Skip to main content](https:\/\/www.fidelity.com\/viewpoints\/retirement\/401k-contributions#navSkipToContent)\n\n[Fidelity.com Home](https:\/\/www.fidelity.com\/)\n\n[Log in](https:\/\/digital.fidelity.com\/prgw\/digital\/login\/full-page)\n\n- [Accounts & Trade]()\n  - [Portfolio](https:\/\/digital.fidelity.com\/prgw\/digital\/login\/full-page?AuthRedUrl=https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/summary)\n  - [Account Positions](https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/positions)\n  - [Trade](https:\/\/digital.fidelity.com\/ftgw\/digital\/trade-equity\/index\/orderEntry)\n  - [Fidelity Trader+ Web](https:\/\/digital.fidelity.com\/ftgw\/digital\/trader-dashboard)\n  - [Fidelity Trader+](https:\/\/www.fidelity.com\/trading\/trading-platforms)\n  - [Transfers](https:\/\/www.fidelity.com\/customer-service\/money-movement)\n  - [Cash Management](https:\/\/digital.fidelity.com\/ftgw\/digital\/cashmanagement)\n  - 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[Documents](https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/documents)\n  - [Tax Forms & Information](https:\/\/www.fidelity.com\/tax-information\/overview)\n  - [Retirement Distributions](https:\/\/digital.fidelity.com\/ftgw\/digital\/mrdhub)\n  - [Refer a Friend](https:\/\/www.fidelity.com\/customer-service\/friendsandfamily3a)\n- [Investing]()\n  - [Self Directed Investing](https:\/\/www.fidelity.com\/investing\/trading)\n  - [Advanced Trading](https:\/\/www.fidelity.com\/investing\/advanced-trading)\n  - [Investing for a Child](https:\/\/www.fidelity.com\/investing\/investing-for-kids)\n  - [Managing Cash & Credit](https:\/\/www.fidelity.com\/investing\/manage-cash-credit-lending)\n  - [Investment Accounts & Products](https:\/\/www.fidelity.com\/investing\/investment-accounts)\n  - [Investing & Trading Education](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/investing-trading-education)\n- [Retirement]()\n  - [Retirement Planning](https:\/\/www.fidelity.com\/retirement\/retirement-planning)\n  - [401(k) Rollovers & IRA Transfers](https:\/\/www.fidelity.com\/retirement\/401k-rollover)\n  - [Retirement Accounts](https:\/\/www.fidelity.com\/retirement\/retirement-accounts)\n  - [Retirement Education](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement-education)\n- [Wealth Management]()\n  - [Wealth Management Offerings](https:\/\/www.fidelity.com\/wealth\/wealth-management-offerings)\n  - [Financial Advisors](https:\/\/www.fidelity.com\/wealth\/financial-advisors)\n  - [Financial Planning](https:\/\/www.fidelity.com\/wealth\/financial-planning)\n  - [Investment Management](https:\/\/www.fidelity.com\/wealth\/investment-management)\n  - [Wealth Management Insights](https:\/\/www.fidelity.com\/learning-center\/wealth-management-insights)\n- [News & Research]()\n  - [News](https:\/\/www.fidelity.com\/news\/overview)\n  - [Wealth Management Insights](https:\/\/www.fidelity.com\/learning-center\/wealth-management-insights)\n  - [Watchlist](https:\/\/digital.fidelity.com\/ftgw\/digital\/watwebex)\n  - [Alerts](https:\/\/alertable.fidelity.com\/ftgw\/digital\/alerts)\n  - [Stocks, ETFs, Crypto](https:\/\/digital.fidelity.com\/prgw\/digital\/research\/src)\n  - [Mutual Funds](https:\/\/fundresearch.fidelity.com\/fund-screener)\n  - [Fixed Income, Bonds & CDs](https:\/\/fixedincome.fidelity.com\/ftgw\/fi\/FILanding)\n  - [Options](https:\/\/digital.fidelity.com\/ftgw\/digital\/options-home\/)\n  - [IPOs](https:\/\/brokerage.fidelity.com\/ftgw\/brkg\/ipo\/calendar)\n  - [Annuities](https:\/\/fundresearch.fidelity.com\/fund-screener\/annuities\/)\n  - [Learn](https:\/\/www.fidelity.com\/learning-center\/overview)\n\n## Learn\n- [Learn](https:\/\/www.fidelity.com\/learning-center\/overview)\n- [Favorites](https:\/\/www.fidelity.com\/learning-center\/favorites)\n- Topics\n  - Financial essentials\n    - [Saving and budgeting money](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/saving-and-budgeting-money \"Saving and budgeting money\")\n    - [Managing debt](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/managing-debt \"Managing debt\")\n    - [Saving for retirement](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement\/saving-for-retirement \"Saving for retirement\")\n    - [Working and income](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/working-and-income \"Working and income\")\n    - [Managing health care](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/managing-health-care \"Managing health care\")\n    - [Talking to family about money](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/talking-to-family-about-money \"Talking to family about money\")\n    - [Personal finance for students](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/personal-finance-for-students \"Personal finance for students\")\n    - [Managing taxes](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/managing-taxes\/managing-taxes \"Managing taxes\")\n    - [Managing estate planning](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/managing-estate-planning \"Managing estate planning\")\n    - [Making charitable donations](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/charitable-giving\/making-charitable-donations \"Making charitable donations\")\n  - Life events\n    - [Changing jobs](https:\/\/www.fidelity.com\/learning-center\/life-events\/career-planning \"Changing jobs\")\n    - [Planning for college](https:\/\/www.fidelity.com\/learning-center\/life-events\/prepare-for-college \"Planning for college\")\n    - [Getting divorced](https:\/\/www.fidelity.com\/learning-center\/life-events\/getting-divorced \"Getting divorced\")\n    - [Becoming a parent](https:\/\/www.fidelity.com\/learning-center\/life-events\/parenting \"Becoming a parent\")\n    - [Caring for aging loved ones](https:\/\/www.fidelity.com\/learning-center\/life-events\/caring-for-the-aging \"Caring for aging loved ones\")\n    - [Marriage and partnering](https:\/\/www.fidelity.com\/learning-center\/life-events\/marriage \"Marriage and partnering\")\n    - [Buying or selling a house](https:\/\/www.fidelity.com\/learning-center\/life-events\/selling-and-buying-house \"Buying or selling a house\")\n    - [Retiring](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement\/planning-your-retirement \"Retiring\")\n    - [Losing a loved one](https:\/\/www.fidelity.com\/learning-center\/life-events\/loss-of-loved-one \"Losing a loved one\")\n    - [Making a major purchase](https:\/\/www.fidelity.com\/learning-center\/life-events\/major-purchase \"Making a major purchase&#9;\")\n    - [Experiencing illness or injury](https:\/\/www.fidelity.com\/learning-center\/life-events\/injury-and-illness \"Experiencing illness or injury\")\n    - [Disabilities and special needs](https:\/\/www.fidelity.com\/learning-center\/life-events\/disabilities-and-special-needs \"Disabilities and special needs\")\n    - [Aging well](https:\/\/www.fidelity.com\/learning-center\/life-events\/aging-well \"Aging well\")\n    - [Becoming self-employed](https:\/\/www.fidelity.com\/learning-center\/life-events\/how-to-become-self-employed \"Becoming self-employed\")\n  - Investing and trading\n    - [Investing for beginners](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/investing-for-beginners \"Investing for beginners\")\n    - [Trading for beginners](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/trading-for-beginners \"Trading for beginners\")\n    - [Crypto basics](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/crypto\/crypto-for-beginners \"Crypto basics\")\n    - [Crypto: Beyond the basics](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/crypto\/crypto-advanced \"Crypto: Beyond the basics\")\n    - [Alternative investing](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/alternative-investing \"Alternative investing\")\n    - [Exploring stocks and sectors](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/finding-stocks-and-sector-ideas \"Exploring stocks and sectors\")\n    - [Investing for income](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/investing-for-income \"Investing for income\")\n    - [Analyzing stock fundamentals](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/fundamental-analysis\/analyzing-stock-fundamentals \"Analyzing stock fundamentals\")\n    - [Using technical analysis](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/technical-analysis\/using-technical-analysis \"Using technical analysis\")\n  - Investment products\n    - [ETFs](https:\/\/www.fidelity.com\/learning-center\/investment-products\/etf\/etfs \"ETFs\")\n    - [Mutual funds](https:\/\/www.fidelity.com\/learning-center\/investment-products\/mutual-funds\/mutual-funds \"Mutual funds \")\n    - [Stocks](https:\/\/www.fidelity.com\/learning-center\/investment-products\/stocks\/stocks \"Stocks\")\n    - [Fixed income, bonds, CDs](https:\/\/www.fidelity.com\/learning-center\/investment-products\/fixed-income-bonds\/fixed-income-bonds-cds \"Fixed income, bonds, CDs\")\n    - [Annuities](https:\/\/www.fidelity.com\/learning-center\/investment-products\/annuities \"Annuities\")\n    - [Closed-end funds](https:\/\/www.fidelity.com\/learning-center\/investment-products\/closed-end-funds\/closed-end-funds \"Closed-end funds\")\n  - Advanced trading\n    - [Using margin](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/using-margin \"Using margin\")\n    - [Options trading basics](https:\/\/www.fidelity.com\/learning-center\/investment-products\/options\/options-for-beginners \"Options trading basics\")\n    - [Options: Beyond the basics](https:\/\/www.fidelity.com\/learning-center\/investment-products\/options\/options \"Options: Beyond the basics\")\n    - [Advanced trading strategies](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/more-trading-strategies \"Advanced trading strategies\")\n    - [Using Fidelity Trader+](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/trading-platforms\/using-trader-plus \"Using Fidelity Trader+\")\n    - [Options Strategy Guide](https:\/\/www.fidelity.com\/learning-center\/investment-products\/options\/options-strategy-guide\/overview \"Options Strategy Guide\")\n    - [Technical Indicator Guide](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/technical-analysis\/technical-indicator-guide\/overview \"Technical Indicator Guide\")\n  - [Latest Market Insights](https:\/\/www.fidelity.com\/viewpoints\/market-and-economic-insights\/market-volatility-overview \"Latest Market Insights\")\n  - [Viewpoints: Expert insights](https:\/\/www.fidelity.com\/learning-center\/viewpoints \"Viewpoints: Expert insights\")\n  - [Smart Money: Tips and tactics](https:\/\/www.fidelity.com\/learning-center\/smart-money \"Smart Money: Tips and tactics\")\n  - [Money Unscripted](https:\/\/www.fidelity.com\/learning-center\/money-unscripted \"Money Unscripted\")\n  - [The Trading Post](https:\/\/www.fidelity.com\/learning-center\/trading-post \"The Trading Post\")\n  - [Women Talk Money](https:\/\/www.fidelity.com\/learning-center\/women-talk-money \"Women Talk Money\")\n  - [Wealth Management Insights](https:\/\/www.fidelity.com\/learning-center\/wealth-management-insights \"Wealth Management Insights\")\n- Events\n  - [Upcoming events](https:\/\/fidelityevents.com\/allevents\/special \"Upcoming events\")\n  - [On-demand webinars](https:\/\/www.fidelity.com\/learning-center\/events\/investing-webinars \"On-demand webinars\")\n  - [Market briefings](https:\/\/fidelityevents.com\/allevents\/filtered?hubFilter=tags|Coaching,Market%20Analysis#hub \"Market briefings\")\n  - [Market Sense](https:\/\/www.fidelity.com\/learning-center\/live-pi \"Market Sense\")\n  - [Trading Strategy Desk® coaching](https:\/\/www.fidelity.com\/learning-center\/events\/coaching-sessions \"Trading Strategy Desk® coaching\")\n  - [Trading Strategy Desk® classes](https:\/\/www.fidelity.com\/learning-center\/events\/virtual-classrooms \"Trading Strategy Desk® classes\")\n- Search\n\nMarch 20, 2025\n\n![Estimate Time](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/time-clock-circle.svg)7 min\n\nSave ![](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/Bookmark.svg) ![](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/save-success.svg)\n\nClose Popover\n\n***\nGreat, you have saved this article to you My Learn Profile page.\n\nShare ![Share](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/share.svg)\n\nClose Popover\n\n***\nAfter-tax 401(k) contributions \\| Retirement benefits \\| Fidelity\n\nClicking a link will open a new window.\n\n- [Facebook](https:\/\/www.fidelity.com\/viewpoints\/retirement\/401k-contributions#facebook)\n- [Twitter](https:\/\/www.fidelity.com\/viewpoints\/retirement\/401k-contributions#twitter)\n- [LinkedIn](https:\/\/www.fidelity.com\/viewpoints\/retirement\/401k-contributions#linkedin)\n\n[Print ![Print](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/Print.svg)](https:\/\/www.fidelity.com\/viewpoints\/retirement\/401k-contributions#print)\n\n# What to do with after-tax 401(k) contributions\nThis strategy could make it worthwhile to keep saving above the annual limit.\n\nFidelity Viewpoints\n\n![](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/migration\/after_tax_401k_2019_banner.jpg)\n\n### Key takeaways\n- After contributing up to the annual limit in your 401(k), you may be able to save even more on an after-tax basis if your plan allows.\n- Earnings on after-tax contributions are considered pre-tax and would grow tax-deferred until withdrawals begin.\n- Converting after-tax 401(k) contributions to a Roth account is an option. After converting to a Roth, earnings can grow and be distributed tax-free if certain requirements are met.\n\nYou already know about the benefits of saving in your workplace savings plan, like a 401(k). But you may be able to save more than you think—for many people, the annual contribution limit isn't the end of their tax-advantaged saving opportunities.\n\nIn 2025, you can contribute up to \\$23,500 to your 401(k). Your contributions can be entirely pre-tax or Roth (if your plan allows for Roth contributions), or some combination of the two. If you're at least age 50 by the end of the calendar year, you can add a catch-up contribution of \\$7,500 pre-tax. And if you're between ages 60 and 63, you will be eligible to contribute up to \\$11,250 as a catch-up contribution, if your plan allows.\n\nUnlike Roth IRAs, there are no income caps on Roth contributions in a workplace savings account like a 401(k). Once you see that you will max out your contributions, you may want to consider making after-tax contributions if your plan allows. These are a third type of contribution to your workplace savings plan, in addition to pre-tax and Roth.\n\nOne quick note about after-tax contributions—you may not have to wait until you’ve hit the annual contribution limit during the year to make them. After-tax contributions can be made at the same time as your regular contributions—just be sure that your after-tax contributions aren't set so high that they will prevent you from fully making pre-tax and Roth contributions first. Check with your plan administrator if the rules seem unclear.\n\nBe aware also that there is an annual maximum limit on contributions from all sources—including your employer. As you’re calculating the amount you can contribute, include any matching or profit sharing\/non-elective contributions from your employer so that “free money” contribution doesn’t get crowded out.\n\nThe IRS allows a total of up to \\$70,000 of employer and employee contributions to be saved in a 401(k) for 2025, plus any age-dependent employee catch-up contributions. Here's what's included:\n\n**What you save**\n\n- Elective deferrals (either tax-deferred, Roth, or a combination)\n- Optional after-tax contributions to your workplace savings plan beyond the annual elective deferral limit (if allowed by your employer)\n\n**What your employer can contribute on your behalf**\n\n- Employer matching contributions\n- Employer nonelective contributions, typically profit sharing\n\n![Fidelity Viewpoints](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/migration\/callouts\/viewpoints-logo-subscription-jump-image.png)\n\nSign up for *Fidelity Viewpoints* weekly email for our latest insights.\n\n[Subscribe now](https:\/\/www.fidelity.com\/viewpoints\/retirement\/401k-contributions#subscribe-container)\n\n![Potential savings from after-tax 401(k) contributions](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/learning-center\/charts-and-graphics\/after-tax-contributions_after-tax-contributions-2025.png)\n\nAfter-tax contributions to your workplace plan can be withdrawn without taxes or penalties. Any earnings on those after-tax contributions are considered pre-tax balances—so taxes would have to be paid on withdrawals of the earnings and there may be a 10% penalty if you're under age 59½.\n\nWhat you should know is that you won't be able to withdraw your after-tax contributions without also withdrawing any earnings associated with them. Taking out just the after-tax balance would not be allowed (unless they are rolled over to an IRA).\n\nLet's say you made \\$10,000 in after-tax contributions and that money earned \\$2,000 in returns. In order to withdraw the \\$10,000, the \\$2,000 in earnings would need to be withdrawn as well. And that applies if you are converting the after-tax balance as well (if you are converting in-plan).\n\n![Withdrawals of pre-tax money, including contributions, employer match, profit sharing, and rollovers, in a workplace savings plan are taxed as ordinary income. Withdrawals of after-tax contributions are not taxed but the earnings on after-tax contributions are taxed as ordinary income.](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/learning-center\/charts-and-graphics\/after-tax-contributions%202025_tax%20treatment%20of%20withdrawals.png)\n\nWith respect to federal taxation only. Distributions may or may not be subject to state taxation.\n\n### Potential strategies for after-tax 401(k) contributions\nMaking after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That's a powerful benefit on its own—but that's not the end of the story. You could then go a step further and convert your after-tax contributions to a Roth account. There are a couple of different ways to accomplish that (if your employer permits), including rolling over your balances to an IRA or doing an in-plan conversion if it's offered by your employer along with a Roth option.\n\nWhen you convert after-tax balances to Roth, no taxes would be due on the conversion of your contributions. However, when you convert, you have to include associated earnings, which would be subject to tax. So, if the option is available to you, you may want to roll those earnings to a traditional IRA instead. That strategy is covered more in subsequent sections.\n\nEarnings in a Roth account grow and may potentially be distributed tax-free as long as certain conditions are met. So no taxes would be due on withdrawals—as long as they take place after age 59½ and the [5-year aging requirement](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement\/roth-ira-5-year-rule) has been met.\n\nSatisfying the 5-year aging requirement for the tax-free withdrawal of earnings means that there are at least 5 years between either the year of your first Roth contribution or the year the conversion took place and any withdrawals. The 5-year clock starts on January 1 of the tax year in which the conversion occurred or the contribution was made, no matter when during the year it actually happened. So if you converted in December, the aging requirement might, in practice, be only a bit more than 4 years.\n\nNot all employers offer a Roth option in their retirement plan—or they may not offer the option to do an in-plan conversion. If your employer does not offer a Roth option or the in-plan Roth conversion feature, you can still roll over your after-tax contributions to a Roth IRA. Here are the 3 strategies. The options available to you will depend on your situation.\n\n### 1\\. In-plan Roth conversion\nMany employers do offer a Roth option in their retirement plan. And some plans allow you to do an in-plan conversion.\n\nAn in-plan Roth conversion allows you to take after-tax contributions and convert them to Roth. Some employers even offer an auto-convert feature inside their plan. You can set it up so that any after-tax contributions are automatically converted to a Roth at regular intervals. Though after-tax contributions have already been taxed, any earnings associated with them have not—so converting earnings will trigger a tax bill in the year of the conversion.\n\n### 2\\. Rolling out to IRAs after an in-plan conversion\nAfter completing a Roth conversion within your workplace retirement plan, rolling out to IRAs should be relatively straightforward if you choose to do that. If you’re planning to roll the money out to a Roth IRA at some point and don’t already contribute to a Roth IRA, it may make sense to open an account and make at least one contribution now, if possible, so the 5-year clock starts ticking on this account. Roth 401(k)s have a 5-year aging requirement as well that is tracked separately from Roth IRAs. These rules don't need to be subsequently met again in the future, unlike Roth conversions, which have a new 5-year clock for each converted amount (however, the earnings follow the rule for either the plan or the Roth IRA).\n\nIf you earn too much to contribute to a Roth IRA, you do have options. Read *Viewpoints* on Fidelity.com: [Do you earn too much for a Roth IRA?](https:\/\/www.fidelity.com\/viewpoints\/retirement\/earn-too-much-contribute-Roth-IRA-conversion)\n\n### 3\\. IRA rollover without an in-plan conversion\nYou can roll over after-tax contributions to a Roth IRA, and it is possible to do that before age 59½. There is a big catch, though: Not all plans allow withdrawals while you’re still with the company, and your retirement plan may have some rules around the requirements for rolling out of the plan. In-service withdrawals come with some potentially complicated rules, so it’s important to understand the rules the IRS has and those of your retirement plan.\n\nIn general, to roll after-tax money to a Roth IRA, earnings on the after-tax balance must, in most cases, also be withdrawn. You may have a few options.\n\nIf you have both pre-tax and after-tax contributions, you may be able to take a partial distribution from your retirement plan, consisting of just one or the other, if the plan separately tracks the sources of all of your contributions. In that case, you may want to roll out only the after-tax source balances directly into a Roth IRA.\n\nThe pre-tax contributions, along with the earnings from both the pre-tax and the after-tax contributions, can be rolled to a traditional IRA, incurring no current income tax.\n\nAlternatively, you can roll everything into a Roth IRA, but you would need to pay income taxes on the pre-tax contributions and all of the earnings.\n\nImportant note: Any partial withdrawals or in-plan conversions may affect eligibility for [net unrealized appreciation](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement\/company-stock) treatment on appreciated employer stock held in the plan.\n\nIt's advisable to consult with a financial advisor before making any decisions.\n\nTo find out more, read *Viewpoints* on Fidelity.com: [Rolling after-tax money in a 401(k) to a Roth IRA](https:\/\/www.fidelity.com\/viewpoints\/retirement\/IRS-401k-rollover-guidance)\n\n### Be sure to consider all your options\nMaking after-tax contributions and then converting to Roth may seem complicated, but the long-term benefits can make it worthwhile. But bear in mind: there can be benefits to keeping your money in the workplace savings plan. Balances in your workplace retirement account may be available for loans, if your plan allows them, while balances in an IRA are not. On the other hand, IRAs have certain advantages as well. For instance, you may be able to get a broader range of investment choices. So it's a good idea to check with your financial advisor and tax advisor before choosing a strategy.\n\n## Tax-free retirement income? Sounds good.\nA Roth IRA can be a powerful way to save for retirement since potential earnings grow tax-free.\n\n[Learn more](https:\/\/www.fidelity.com\/retirement-ira\/roth-ira)\n\n## More to explore\n### [Explore Roth IRA conversions](https:\/\/www.fidelity.com\/building-savings\/learn-about-iras\/convert-to-roth)\nKnow how to take advantage of the potential of a Roth IRA.\n\n### [Get help with your plan](https:\/\/www.fidelity.com\/calculators-tools\/planning-guidance-center)\nCreate a retirement income plan in our Planning & Guidance Center.\n\n## Subscribe to  *Fidelity Viewpoints®*\nTimely news and insights from our pros on markets, investing, and personal finance.(debug tcm:2365-349569)\n\n### Looking for more ideas and insights?\nWe'll deliver them right to your inbox.\n\nManage subscriptions\n\n### Thanks for subscribing\\!\nCheck out your Favorites page, where you can:\n\n- Tell us the topics you want to learn more about\n- View content you've saved for later\n- Subscribe to our newsletters\n\n[Go to Favorites](https:\/\/www.fidelity.com\/learning-center\/favorites)\n\n### We're on our way, but not quite there yet\nGood news, you're on the early-access list.   \n But we're not available in your state just yet. 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bPJL+pkG7w4iF1IiZLyXhfbQ7pml9e3604pRtnPccfbDeIDF0v6ba\/uJ4NBrnVJRu9y\/BnOlMoqjVPDpsP3c7dAzw4SR1mWv8zQEYrcClV137yHSITjs3bAQfYYQRRhhhhBFGGAH8D9DXSGd7oPh2AAAAAElFTkSuQmCC)\n\nWelcome 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information](https:\/\/www.fidelity.com\/viewpoints\/retirement\/401k-contributions)\n\n![](data:image\/png;base64,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)\n\nTo get your conversation started, type a question in the entry field or choose from one of the following popular topics and commonly asked questions.\n\n- How can I change my retirement contribution?\n- What strategies can I implement to improve my retirement savings contributions?\n- Can after-tax contributions be made to a retirement plan that does not allow them?\n\nProvide Feedback\n\nanswers will appear above the text input\n\nSubmit message","attrs_readable_markdown":"What to do with after-tax 401(k) contributions\n\nThis strategy could make it worthwhile to keep saving above the annual limit.\n\n![](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/migration\/after_tax_401k_2019_banner.jpg)\n\n### Key takeaways\n- After contributing up to the annual limit in your 401(k), you may be able to save even more on an after-tax basis if your plan allows.\n- Earnings on after-tax contributions are considered pre-tax and would grow tax-deferred until withdrawals begin.\n- Converting after-tax 401(k) contributions to a Roth account is an option. After converting to a Roth, earnings can grow and be distributed tax-free if certain requirements are met.\n\nYou already know about the benefits of saving in your workplace savings plan, like a 401(k). But you may be able to save more than you think—for many people, the annual contribution limit isn't the end of their tax-advantaged saving opportunities.\n\nIn 2025, you can contribute up to \\$23,500 to your 401(k). Your contributions can be entirely pre-tax or Roth (if your plan allows for Roth contributions), or some combination of the two. If you're at least age 50 by the end of the calendar year, you can add a catch-up contribution of \\$7,500 pre-tax. And if you're between ages 60 and 63, you will be eligible to contribute up to \\$11,250 as a catch-up contribution, if your plan allows.\n\nUnlike Roth IRAs, there are no income caps on Roth contributions in a workplace savings account like a 401(k). Once you see that you will max out your contributions, you may want to consider making after-tax contributions if your plan allows. These are a third type of contribution to your workplace savings plan, in addition to pre-tax and Roth.\n\nOne quick note about after-tax contributions—you may not have to wait until you’ve hit the annual contribution limit during the year to make them. After-tax contributions can be made at the same time as your regular contributions—just be sure that your after-tax contributions aren't set so high that they will prevent you from fully making pre-tax and Roth contributions first. Check with your plan administrator if the rules seem unclear.\n\nBe aware also that there is an annual maximum limit on contributions from all sources—including your employer. As you’re calculating the amount you can contribute, include any matching or profit sharing\/non-elective contributions from your employer so that “free money” contribution doesn’t get crowded out.\n\nThe IRS allows a total of up to \\$70,000 of employer and employee contributions to be saved in a 401(k) for 2025, plus any age-dependent employee catch-up contributions. Here's what's included:\n\n**What you save**\n\n- Elective deferrals (either tax-deferred, Roth, or a combination)\n- Optional after-tax contributions to your workplace savings plan beyond the annual elective deferral limit (if allowed by your employer)\n\n**What your employer can contribute on your behalf**\n\n- Employer matching contributions\n- Employer nonelective contributions, typically profit sharing\n\n![Fidelity Viewpoints](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/migration\/callouts\/viewpoints-logo-subscription-jump-image.png)\n\nSign up for *Fidelity Viewpoints* weekly email for our latest insights.\n\n![Potential savings from after-tax 401(k) contributions](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/learning-center\/charts-and-graphics\/after-tax-contributions_after-tax-contributions-2025.png)\n\nAfter-tax contributions to your workplace plan can be withdrawn without taxes or penalties. Any earnings on those after-tax contributions are considered pre-tax balances—so taxes would have to be paid on withdrawals of the earnings and there may be a 10% penalty if you're under age 59½.\n\nWhat you should know is that you won't be able to withdraw your after-tax contributions without also withdrawing any earnings associated with them. Taking out just the after-tax balance would not be allowed (unless they are rolled over to an IRA).\n\nLet's say you made \\$10,000 in after-tax contributions and that money earned \\$2,000 in returns. In order to withdraw the \\$10,000, the \\$2,000 in earnings would need to be withdrawn as well. And that applies if you are converting the after-tax balance as well (if you are converting in-plan).\n\n![Withdrawals of pre-tax money, including contributions, employer match, profit sharing, and rollovers, in a workplace savings plan are taxed as ordinary income. Withdrawals of after-tax contributions are not taxed but the earnings on after-tax contributions are taxed as ordinary income.](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/learning-center\/charts-and-graphics\/after-tax-contributions%202025_tax%20treatment%20of%20withdrawals.png)\n\nWith respect to federal taxation only. Distributions may or may not be subject to state taxation.\n\n### Potential strategies for after-tax 401(k) contributions\nMaking after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That's a powerful benefit on its own—but that's not the end of the story. You could then go a step further and convert your after-tax contributions to a Roth account. There are a couple of different ways to accomplish that (if your employer permits), including rolling over your balances to an IRA or doing an in-plan conversion if it's offered by your employer along with a Roth option.\n\nWhen you convert after-tax balances to Roth, no taxes would be due on the conversion of your contributions. However, when you convert, you have to include associated earnings, which would be subject to tax. So, if the option is available to you, you may want to roll those earnings to a traditional IRA instead. That strategy is covered more in subsequent sections.\n\nEarnings in a Roth account grow and may potentially be distributed tax-free as long as certain conditions are met. So no taxes would be due on withdrawals—as long as they take place after age 59½ and the [5-year aging requirement](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement\/roth-ira-5-year-rule) has been met.\n\nSatisfying the 5-year aging requirement for the tax-free withdrawal of earnings means that there are at least 5 years between either the year of your first Roth contribution or the year the conversion took place and any withdrawals. The 5-year clock starts on January 1 of the tax year in which the conversion occurred or the contribution was made, no matter when during the year it actually happened. So if you converted in December, the aging requirement might, in practice, be only a bit more than 4 years.\n\nNot all employers offer a Roth option in their retirement plan—or they may not offer the option to do an in-plan conversion. If your employer does not offer a Roth option or the in-plan Roth conversion feature, you can still roll over your after-tax contributions to a Roth IRA. Here are the 3 strategies. The options available to you will depend on your situation.\n\n### 1\\. In-plan Roth conversion\nMany employers do offer a Roth option in their retirement plan. And some plans allow you to do an in-plan conversion.\n\nAn in-plan Roth conversion allows you to take after-tax contributions and convert them to Roth. Some employers even offer an auto-convert feature inside their plan. You can set it up so that any after-tax contributions are automatically converted to a Roth at regular intervals. Though after-tax contributions have already been taxed, any earnings associated with them have not—so converting earnings will trigger a tax bill in the year of the conversion.\n\n### 2\\. Rolling out to IRAs after an in-plan conversion\nAfter completing a Roth conversion within your workplace retirement plan, rolling out to IRAs should be relatively straightforward if you choose to do that. If you’re planning to roll the money out to a Roth IRA at some point and don’t already contribute to a Roth IRA, it may make sense to open an account and make at least one contribution now, if possible, so the 5-year clock starts ticking on this account. Roth 401(k)s have a 5-year aging requirement as well that is tracked separately from Roth IRAs. These rules don't need to be subsequently met again in the future, unlike Roth conversions, which have a new 5-year clock for each converted amount (however, the earnings follow the rule for either the plan or the Roth IRA).\n\nIf you earn too much to contribute to a Roth IRA, you do have options. Read *Viewpoints* on Fidelity.com: [Do you earn too much for a Roth IRA?](https:\/\/www.fidelity.com\/viewpoints\/retirement\/earn-too-much-contribute-Roth-IRA-conversion)\n\n### 3\\. IRA rollover without an in-plan conversion\nYou can roll over after-tax contributions to a Roth IRA, and it is possible to do that before age 59½. There is a big catch, though: Not all plans allow withdrawals while you’re still with the company, and your retirement plan may have some rules around the requirements for rolling out of the plan. In-service withdrawals come with some potentially complicated rules, so it’s important to understand the rules the IRS has and those of your retirement plan.\n\nIn general, to roll after-tax money to a Roth IRA, earnings on the after-tax balance must, in most cases, also be withdrawn. You may have a few options.\n\nIf you have both pre-tax and after-tax contributions, you may be able to take a partial distribution from your retirement plan, consisting of just one or the other, if the plan separately tracks the sources of all of your contributions. In that case, you may want to roll out only the after-tax source balances directly into a Roth IRA.\n\nThe pre-tax contributions, along with the earnings from both the pre-tax and the after-tax contributions, can be rolled to a traditional IRA, incurring no current income tax.\n\nAlternatively, you can roll everything into a Roth IRA, but you would need to pay income taxes on the pre-tax contributions and all of the earnings.\n\nImportant note: Any partial withdrawals or in-plan conversions may affect eligibility for [net unrealized appreciation](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement\/company-stock) treatment on appreciated employer stock held in the plan.\n\nIt's advisable to consult with a financial advisor before making any decisions.\n\nTo find out more, read *Viewpoints* on Fidelity.com: [Rolling after-tax money in a 401(k) to a Roth IRA](https:\/\/www.fidelity.com\/viewpoints\/retirement\/IRS-401k-rollover-guidance)\n\n### Be sure to consider all your options\nMaking after-tax contributions and then converting to Roth may seem complicated, but the long-term benefits can make it worthwhile. But bear in mind: there can be benefits to keeping your money in the workplace savings plan. Balances in your workplace retirement account may be available for loans, if your plan allows them, while balances in an IRA are not. On the other hand, IRAs have certain advantages as well. For instance, you may be able to get a broader range of investment choices. So it's a good idea to check with your financial advisor and tax advisor before choosing a strategy.","meta_canonical":null}

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URL	https://www.fidelity.com/viewpoints/retirement/401k-contributions
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Meta Title	After-tax 401(k) contributions \| Retirement benefits \| Fidelity
Meta Description	Making after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That's a great benefit on its own - learn more here.
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Boilerpipe Text	What to do with after-tax 401(k) contributions This strategy could make it worthwhile to keep saving above the annual limit. Key takeaways After contributing up to the annual limit in your 401(k), you may be able to save even more on an after-tax basis if your plan allows. Earnings on after-tax contributions are considered pre-tax and would grow tax-deferred until withdrawals begin. Converting after-tax 401(k) contributions to a Roth account is an option. After converting to a Roth, earnings can grow and be distributed tax-free if certain requirements are met. You already know about the benefits of saving in your workplace savings plan, like a 401(k). But you may be able to save more than you think—for many people, the annual contribution limit isn't the end of their tax-advantaged saving opportunities. In 2025, you can contribute up to $23,500 to your 401(k). Your contributions can be entirely pre-tax or Roth (if your plan allows for Roth contributions), or some combination of the two. If you're at least age 50 by the end of the calendar year, you can add a catch-up contribution of $7,500 pre-tax. And if you're between ages 60 and 63, you will be eligible to contribute up to $11,250 as a catch-up contribution, if your plan allows. Unlike Roth IRAs, there are no income caps on Roth contributions in a workplace savings account like a 401(k). Once you see that you will max out your contributions, you may want to consider making after-tax contributions if your plan allows. These are a third type of contribution to your workplace savings plan, in addition to pre-tax and Roth. One quick note about after-tax contributions—you may not have to wait until you’ve hit the annual contribution limit during the year to make them. After-tax contributions can be made at the same time as your regular contributions—just be sure that your after-tax contributions aren't set so high that they will prevent you from fully making pre-tax and Roth contributions first. Check with your plan administrator if the rules seem unclear. Be aware also that there is an annual maximum limit on contributions from all sources—including your employer. As you’re calculating the amount you can contribute, include any matching or profit sharing/non-elective contributions from your employer so that “free money” contribution doesn’t get crowded out. The IRS allows a total of up to $70,000 of employer and employee contributions to be saved in a 401(k) for 2025, plus any age-dependent employee catch-up contributions. Here's what's included: What you save Elective deferrals (either tax-deferred, Roth, or a combination) Optional after-tax contributions to your workplace savings plan beyond the annual elective deferral limit (if allowed by your employer) What your employer can contribute on your behalf Employer matching contributions Employer nonelective contributions, typically profit sharing Sign up for Fidelity Viewpoints weekly email for our latest insights. After-tax contributions to your workplace plan can be withdrawn without taxes or penalties. Any earnings on those after-tax contributions are considered pre-tax balances—so taxes would have to be paid on withdrawals of the earnings and there may be a 10% penalty if you're under age 59½. What you should know is that you won't be able to withdraw your after-tax contributions without also withdrawing any earnings associated with them. Taking out just the after-tax balance would not be allowed (unless they are rolled over to an IRA). Let's say you made $10,000 in after-tax contributions and that money earned $2,000 in returns. In order to withdraw the $10,000, the $2,000 in earnings would need to be withdrawn as well. And that applies if you are converting the after-tax balance as well (if you are converting in-plan). With respect to federal taxation only. Distributions may or may not be subject to state taxation. Potential strategies for after-tax 401(k) contributions Making after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That's a powerful benefit on its own—but that's not the end of the story. You could then go a step further and convert your after-tax contributions to a Roth account. There are a couple of different ways to accomplish that (if your employer permits), including rolling over your balances to an IRA or doing an in-plan conversion if it's offered by your employer along with a Roth option. When you convert after-tax balances to Roth, no taxes would be due on the conversion of your contributions. However, when you convert, you have to include associated earnings, which would be subject to tax. So, if the option is available to you, you may want to roll those earnings to a traditional IRA instead. That strategy is covered more in subsequent sections. Earnings in a Roth account grow and may potentially be distributed tax-free as long as certain conditions are met. So no taxes would be due on withdrawals—as long as they take place after age 59½ and the 5-year aging requirement has been met. Satisfying the 5-year aging requirement for the tax-free withdrawal of earnings means that there are at least 5 years between either the year of your first Roth contribution or the year the conversion took place and any withdrawals. The 5-year clock starts on January 1 of the tax year in which the conversion occurred or the contribution was made, no matter when during the year it actually happened. So if you converted in December, the aging requirement might, in practice, be only a bit more than 4 years. Not all employers offer a Roth option in their retirement plan—or they may not offer the option to do an in-plan conversion. If your employer does not offer a Roth option or the in-plan Roth conversion feature, you can still roll over your after-tax contributions to a Roth IRA. Here are the 3 strategies. The options available to you will depend on your situation. 1. In-plan Roth conversion Many employers do offer a Roth option in their retirement plan. And some plans allow you to do an in-plan conversion. An in-plan Roth conversion allows you to take after-tax contributions and convert them to Roth. Some employers even offer an auto-convert feature inside their plan. You can set it up so that any after-tax contributions are automatically converted to a Roth at regular intervals. Though after-tax contributions have already been taxed, any earnings associated with them have not—so converting earnings will trigger a tax bill in the year of the conversion. 2. Rolling out to IRAs after an in-plan conversion After completing a Roth conversion within your workplace retirement plan, rolling out to IRAs should be relatively straightforward if you choose to do that. If you’re planning to roll the money out to a Roth IRA at some point and don’t already contribute to a Roth IRA, it may make sense to open an account and make at least one contribution now, if possible, so the 5-year clock starts ticking on this account. Roth 401(k)s have a 5-year aging requirement as well that is tracked separately from Roth IRAs. These rules don't need to be subsequently met again in the future, unlike Roth conversions, which have a new 5-year clock for each converted amount (however, the earnings follow the rule for either the plan or the Roth IRA). If you earn too much to contribute to a Roth IRA, you do have options. Read Viewpoints on Fidelity.com: Do you earn too much for a Roth IRA? 3. IRA rollover without an in-plan conversion You can roll over after-tax contributions to a Roth IRA, and it is possible to do that before age 59½. There is a big catch, though: Not all plans allow withdrawals while you’re still with the company, and your retirement plan may have some rules around the requirements for rolling out of the plan. In-service withdrawals come with some potentially complicated rules, so it’s important to understand the rules the IRS has and those of your retirement plan. In general, to roll after-tax money to a Roth IRA, earnings on the after-tax balance must, in most cases, also be withdrawn. You may have a few options. If you have both pre-tax and after-tax contributions, you may be able to take a partial distribution from your retirement plan, consisting of just one or the other, if the plan separately tracks the sources of all of your contributions. In that case, you may want to roll out only the after-tax source balances directly into a Roth IRA. The pre-tax contributions, along with the earnings from both the pre-tax and the after-tax contributions, can be rolled to a traditional IRA, incurring no current income tax. Alternatively, you can roll everything into a Roth IRA, but you would need to pay income taxes on the pre-tax contributions and all of the earnings. Important note: Any partial withdrawals or in-plan conversions may affect eligibility for net unrealized appreciation treatment on appreciated employer stock held in the plan. It's advisable to consult with a financial advisor before making any decisions. To find out more, read Viewpoints on Fidelity.com: Rolling after-tax money in a 401(k) to a Roth IRA Be sure to consider all your options Making after-tax contributions and then converting to Roth may seem complicated, but the long-term benefits can make it worthwhile. But bear in mind: there can be benefits to keeping your money in the workplace savings plan. Balances in your workplace retirement account may be available for loans, if your plan allows them, while balances in an IRA are not. On the other hand, IRAs have certain advantages as well. For instance, you may be able to get a broader range of investment choices. So it's a good idea to check with your financial advisor and tax advisor before choosing a strategy.
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Share ![Share](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/article/share.svg) Close Popover * After-tax 401(k) contributions \\| Retirement benefits \\| Fidelity Clicking a link will open a new window. - [Facebook](https://www.fidelity.com/viewpoints/retirement/401k-contributions#facebook) - [Twitter](https://www.fidelity.com/viewpoints/retirement/401k-contributions#twitter) - [LinkedIn](https://www.fidelity.com/viewpoints/retirement/401k-contributions#linkedin) [Print ![Print](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/article/Print.svg)](https://www.fidelity.com/viewpoints/retirement/401k-contributions#print) # What to do with after-tax 401(k) contributions This strategy could make it worthwhile to keep saving above the annual limit. Fidelity Viewpoints ![](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/migration/after_tax_401k_2019_banner.jpg) ### Key takeaways - After contributing up to the annual limit in your 401(k), you may be able to save even more on an after-tax basis if your plan allows. - Earnings on after-tax contributions are considered pre-tax and would grow tax-deferred until withdrawals begin. - Converting after-tax 401(k) contributions to a Roth account is an option. After converting to a Roth, earnings can grow and be distributed tax-free if certain requirements are met. You already know about the benefits of saving in your workplace savings plan, like a 401(k). But you may be able to save more than you think—for many people, the annual contribution limit isn't the end of their tax-advantaged saving opportunities. In 2025, you can contribute up to \$23,500 to your 401(k). Your contributions can be entirely pre-tax or Roth (if your plan allows for Roth contributions), or some combination of the two. If you're at least age 50 by the end of the calendar year, you can add a catch-up contribution of \$7,500 pre-tax. And if you're between ages 60 and 63, you will be eligible to contribute up to \$11,250 as a catch-up contribution, if your plan allows. Unlike Roth IRAs, there are no income caps on Roth contributions in a workplace savings account like a 401(k). Once you see that you will max out your contributions, you may want to consider making after-tax contributions if your plan allows. These are a third type of contribution to your workplace savings plan, in addition to pre-tax and Roth. One quick note about after-tax contributions—you may not have to wait until you’ve hit the annual contribution limit during the year to make them. After-tax contributions can be made at the same time as your regular contributions—just be sure that your after-tax contributions aren't set so high that they will prevent you from fully making pre-tax and Roth contributions first. Check with your plan administrator if the rules seem unclear. Be aware also that there is an annual maximum limit on contributions from all sources—including your employer. As you’re calculating the amount you can contribute, include any matching or profit sharing/non-elective contributions from your employer so that “free money” contribution doesn’t get crowded out. The IRS allows a total of up to \$70,000 of employer and employee contributions to be saved in a 401(k) for 2025, plus any age-dependent employee catch-up contributions. Here's what's included: What you save - Elective deferrals (either tax-deferred, Roth, or a combination) - Optional after-tax contributions to your workplace savings plan beyond the annual elective deferral limit (if allowed by your employer) What your employer can contribute on your behalf - Employer matching contributions - Employer nonelective contributions, typically profit sharing ![Fidelity Viewpoints](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/migration/callouts/viewpoints-logo-subscription-jump-image.png) Sign up for Fidelity Viewpoints weekly email for our latest insights. [Subscribe now](https://www.fidelity.com/viewpoints/retirement/401k-contributions#subscribe-container) ![Potential savings from after-tax 401(k) contributions](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/learning-center/charts-and-graphics/after-tax-contributions_after-tax-contributions-2025.png) After-tax contributions to your workplace plan can be withdrawn without taxes or penalties. Any earnings on those after-tax contributions are considered pre-tax balances—so taxes would have to be paid on withdrawals of the earnings and there may be a 10% penalty if you're under age 59½. What you should know is that you won't be able to withdraw your after-tax contributions without also withdrawing any earnings associated with them. Taking out just the after-tax balance would not be allowed (unless they are rolled over to an IRA). Let's say you made \$10,000 in after-tax contributions and that money earned \$2,000 in returns. In order to withdraw the \$10,000, the \$2,000 in earnings would need to be withdrawn as well. And that applies if you are converting the after-tax balance as well (if you are converting in-plan). ![Withdrawals of pre-tax money, including contributions, employer match, profit sharing, and rollovers, in a workplace savings plan are taxed as ordinary income. Withdrawals of after-tax contributions are not taxed but the earnings on after-tax contributions are taxed as ordinary income.](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/learning-center/charts-and-graphics/after-tax-contributions%202025_tax%20treatment%20of%20withdrawals.png) With respect to federal taxation only. Distributions may or may not be subject to state taxation. ### Potential strategies for after-tax 401(k) contributions Making after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That's a powerful benefit on its own—but that's not the end of the story. You could then go a step further and convert your after-tax contributions to a Roth account. There are a couple of different ways to accomplish that (if your employer permits), including rolling over your balances to an IRA or doing an in-plan conversion if it's offered by your employer along with a Roth option. When you convert after-tax balances to Roth, no taxes would be due on the conversion of your contributions. However, when you convert, you have to include associated earnings, which would be subject to tax. So, if the option is available to you, you may want to roll those earnings to a traditional IRA instead. That strategy is covered more in subsequent sections. Earnings in a Roth account grow and may potentially be distributed tax-free as long as certain conditions are met. So no taxes would be due on withdrawals—as long as they take place after age 59½ and the [5-year aging requirement](https://www.fidelity.com/learning-center/personal-finance/retirement/roth-ira-5-year-rule) has been met. Satisfying the 5-year aging requirement for the tax-free withdrawal of earnings means that there are at least 5 years between either the year of your first Roth contribution or the year the conversion took place and any withdrawals. The 5-year clock starts on January 1 of the tax year in which the conversion occurred or the contribution was made, no matter when during the year it actually happened. So if you converted in December, the aging requirement might, in practice, be only a bit more than 4 years. Not all employers offer a Roth option in their retirement plan—or they may not offer the option to do an in-plan conversion. If your employer does not offer a Roth option or the in-plan Roth conversion feature, you can still roll over your after-tax contributions to a Roth IRA. Here are the 3 strategies. The options available to you will depend on your situation. ### 1\. In-plan Roth conversion Many employers do offer a Roth option in their retirement plan. And some plans allow you to do an in-plan conversion. An in-plan Roth conversion allows you to take after-tax contributions and convert them to Roth. Some employers even offer an auto-convert feature inside their plan. You can set it up so that any after-tax contributions are automatically converted to a Roth at regular intervals. Though after-tax contributions have already been taxed, any earnings associated with them have not—so converting earnings will trigger a tax bill in the year of the conversion. ### 2\. Rolling out to IRAs after an in-plan conversion After completing a Roth conversion within your workplace retirement plan, rolling out to IRAs should be relatively straightforward if you choose to do that. If you’re planning to roll the money out to a Roth IRA at some point and don’t already contribute to a Roth IRA, it may make sense to open an account and make at least one contribution now, if possible, so the 5-year clock starts ticking on this account. Roth 401(k)s have a 5-year aging requirement as well that is tracked separately from Roth IRAs. These rules don't need to be subsequently met again in the future, unlike Roth conversions, which have a new 5-year clock for each converted amount (however, the earnings follow the rule for either the plan or the Roth IRA). If you earn too much to contribute to a Roth IRA, you do have options. Read Viewpoints on Fidelity.com: [Do you earn too much for a Roth IRA?](https://www.fidelity.com/viewpoints/retirement/earn-too-much-contribute-Roth-IRA-conversion) ### 3\. IRA rollover without an in-plan conversion You can roll over after-tax contributions to a Roth IRA, and it is possible to do that before age 59½. There is a big catch, though: Not all plans allow withdrawals while you’re still with the company, and your retirement plan may have some rules around the requirements for rolling out of the plan. In-service withdrawals come with some potentially complicated rules, so it’s important to understand the rules the IRS has and those of your retirement plan. In general, to roll after-tax money to a Roth IRA, earnings on the after-tax balance must, in most cases, also be withdrawn. You may have a few options. If you have both pre-tax and after-tax contributions, you may be able to take a partial distribution from your retirement plan, consisting of just one or the other, if the plan separately tracks the sources of all of your contributions. In that case, you may want to roll out only the after-tax source balances directly into a Roth IRA. The pre-tax contributions, along with the earnings from both the pre-tax and the after-tax contributions, can be rolled to a traditional IRA, incurring no current income tax. Alternatively, you can roll everything into a Roth IRA, but you would need to pay income taxes on the pre-tax contributions and all of the earnings. Important note: Any partial withdrawals or in-plan conversions may affect eligibility for [net unrealized appreciation](https://www.fidelity.com/learning-center/personal-finance/retirement/company-stock) treatment on appreciated employer stock held in the plan. It's advisable to consult with a financial advisor before making any decisions. To find out more, read Viewpoints on Fidelity.com: [Rolling after-tax money in a 401(k) to a Roth IRA](https://www.fidelity.com/viewpoints/retirement/IRS-401k-rollover-guidance) ### Be sure to consider all your options Making after-tax contributions and then converting to Roth may seem complicated, but the long-term benefits can make it worthwhile. But bear in mind: there can be benefits to keeping your money in the workplace savings plan. Balances in your workplace retirement account may be available for loans, if your plan allows them, while balances in an IRA are not. On the other hand, IRAs have certain advantages as well. For instance, you may be able to get a broader range of investment choices. So it's a good idea to check with your financial advisor and tax advisor before choosing a strategy. ## Tax-free retirement income? Sounds good. A Roth IRA can be a powerful way to save for retirement since potential earnings grow tax-free. [Learn more](https://www.fidelity.com/retirement-ira/roth-ira) ## More to explore ### [Explore Roth IRA conversions](https://www.fidelity.com/building-savings/learn-about-iras/convert-to-roth) Know how to take advantage of the potential of a Roth IRA. ### [Get help with your plan](https://www.fidelity.com/calculators-tools/planning-guidance-center) Create a retirement income plan in our Planning & Guidance Center. ## Subscribe to Fidelity Viewpoints® Timely news and insights from our pros on markets, investing, and personal finance.(debug tcm:2365-349569) ### Looking for more ideas and insights? We'll deliver them right to your inbox. Manage subscriptions ### Thanks for subscribing\! 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Loading - [Managing taxes](https://www.fidelity.com/learning-center/personal-finance/managing-taxes/managing-taxes) - [Changing jobs](https://www.fidelity.com/learning-center/life-events/career-planning) - [Investing for income](https://www.fidelity.com/learning-center/trading-investing/investing-for-income) - [Preparing for retirement](https://www.fidelity.com/learning-center/personal-finance/retirement/planning-your-retirement) - [Saving for retirement](https://www.fidelity.com/learning-center/personal-finance/retirement/saving-for-retirement) - [Living in retirement](https://www.fidelity.com/learning-center/personal-finance/retirement/planning-your-retirement) - [Trading options](https://www.fidelity.com/learning-center/investment-products/options/options) For a distribution to be considered qualified, the 5-year aging requirement has to be satisfied, and you must be age 59½ or older or meet one of several exemptions (disability, qualified first-time home purchase, or death among them). For tax year 2025, if you're single, the ability to contribute to a Roth IRA begins to phase out at MAGI of \$150,000 and is completely phased out at \$165,000. If you're married filing jointly, the phaseout range is \$236,000 to \$246,000. Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets. Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. 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zw4SR1mWv8zQEYrcClV137yHSITjs3bAQfYYQRRhhhhBFGGAH8D9DXSGd7oPh2AAAAAElFTkSuQmCC) 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zw4SR1mWv8zQEYrcClV137yHSITjs3bAQfYYQRRhhhhBFGGAH8D9DXSGd7oPh2AAAAAElFTkSuQmCC) 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Readable Markdown	What to do with after-tax 401(k) contributions This strategy could make it worthwhile to keep saving above the annual limit. ![](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/migration/after_tax_401k_2019_banner.jpg) ### Key takeaways - After contributing up to the annual limit in your 401(k), you may be able to save even more on an after-tax basis if your plan allows. - Earnings on after-tax contributions are considered pre-tax and would grow tax-deferred until withdrawals begin. - Converting after-tax 401(k) contributions to a Roth account is an option. After converting to a Roth, earnings can grow and be distributed tax-free if certain requirements are met. You already know about the benefits of saving in your workplace savings plan, like a 401(k). But you may be able to save more than you think—for many people, the annual contribution limit isn't the end of their tax-advantaged saving opportunities. In 2025, you can contribute up to \$23,500 to your 401(k). Your contributions can be entirely pre-tax or Roth (if your plan allows for Roth contributions), or some combination of the two. If you're at least age 50 by the end of the calendar year, you can add a catch-up contribution of \$7,500 pre-tax. And if you're between ages 60 and 63, you will be eligible to contribute up to \$11,250 as a catch-up contribution, if your plan allows. Unlike Roth IRAs, there are no income caps on Roth contributions in a workplace savings account like a 401(k). Once you see that you will max out your contributions, you may want to consider making after-tax contributions if your plan allows. These are a third type of contribution to your workplace savings plan, in addition to pre-tax and Roth. One quick note about after-tax contributions—you may not have to wait until you’ve hit the annual contribution limit during the year to make them. After-tax contributions can be made at the same time as your regular contributions—just be sure that your after-tax contributions aren't set so high that they will prevent you from fully making pre-tax and Roth contributions first. Check with your plan administrator if the rules seem unclear. Be aware also that there is an annual maximum limit on contributions from all sources—including your employer. As you’re calculating the amount you can contribute, include any matching or profit sharing/non-elective contributions from your employer so that “free money” contribution doesn’t get crowded out. The IRS allows a total of up to \$70,000 of employer and employee contributions to be saved in a 401(k) for 2025, plus any age-dependent employee catch-up contributions. Here's what's included: What you save - Elective deferrals (either tax-deferred, Roth, or a combination) - Optional after-tax contributions to your workplace savings plan beyond the annual elective deferral limit (if allowed by your employer) What your employer can contribute on your behalf - Employer matching contributions - Employer nonelective contributions, typically profit sharing ![Fidelity Viewpoints](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/migration/callouts/viewpoints-logo-subscription-jump-image.png) Sign up for Fidelity Viewpoints weekly email for our latest insights. ![Potential savings from after-tax 401(k) contributions](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/learning-center/charts-and-graphics/after-tax-contributions_after-tax-contributions-2025.png) After-tax contributions to your workplace plan can be withdrawn without taxes or penalties. Any earnings on those after-tax contributions are considered pre-tax balances—so taxes would have to be paid on withdrawals of the earnings and there may be a 10% penalty if you're under age 59½. What you should know is that you won't be able to withdraw your after-tax contributions without also withdrawing any earnings associated with them. Taking out just the after-tax balance would not be allowed (unless they are rolled over to an IRA). Let's say you made \$10,000 in after-tax contributions and that money earned \$2,000 in returns. In order to withdraw the \$10,000, the \$2,000 in earnings would need to be withdrawn as well. And that applies if you are converting the after-tax balance as well (if you are converting in-plan). ![Withdrawals of pre-tax money, including contributions, employer match, profit sharing, and rollovers, in a workplace savings plan are taxed as ordinary income. Withdrawals of after-tax contributions are not taxed but the earnings on after-tax contributions are taxed as ordinary income.](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/learning-center/charts-and-graphics/after-tax-contributions%202025_tax%20treatment%20of%20withdrawals.png) With respect to federal taxation only. Distributions may or may not be subject to state taxation. ### Potential strategies for after-tax 401(k) contributions Making after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That's a powerful benefit on its own—but that's not the end of the story. You could then go a step further and convert your after-tax contributions to a Roth account. There are a couple of different ways to accomplish that (if your employer permits), including rolling over your balances to an IRA or doing an in-plan conversion if it's offered by your employer along with a Roth option. When you convert after-tax balances to Roth, no taxes would be due on the conversion of your contributions. However, when you convert, you have to include associated earnings, which would be subject to tax. So, if the option is available to you, you may want to roll those earnings to a traditional IRA instead. That strategy is covered more in subsequent sections. Earnings in a Roth account grow and may potentially be distributed tax-free as long as certain conditions are met. So no taxes would be due on withdrawals—as long as they take place after age 59½ and the [5-year aging requirement](https://www.fidelity.com/learning-center/personal-finance/retirement/roth-ira-5-year-rule) has been met. Satisfying the 5-year aging requirement for the tax-free withdrawal of earnings means that there are at least 5 years between either the year of your first Roth contribution or the year the conversion took place and any withdrawals. The 5-year clock starts on January 1 of the tax year in which the conversion occurred or the contribution was made, no matter when during the year it actually happened. So if you converted in December, the aging requirement might, in practice, be only a bit more than 4 years. Not all employers offer a Roth option in their retirement plan—or they may not offer the option to do an in-plan conversion. If your employer does not offer a Roth option or the in-plan Roth conversion feature, you can still roll over your after-tax contributions to a Roth IRA. Here are the 3 strategies. The options available to you will depend on your situation. ### 1\. In-plan Roth conversion Many employers do offer a Roth option in their retirement plan. And some plans allow you to do an in-plan conversion. An in-plan Roth conversion allows you to take after-tax contributions and convert them to Roth. Some employers even offer an auto-convert feature inside their plan. You can set it up so that any after-tax contributions are automatically converted to a Roth at regular intervals. Though after-tax contributions have already been taxed, any earnings associated with them have not—so converting earnings will trigger a tax bill in the year of the conversion. ### 2\. Rolling out to IRAs after an in-plan conversion After completing a Roth conversion within your workplace retirement plan, rolling out to IRAs should be relatively straightforward if you choose to do that. If you’re planning to roll the money out to a Roth IRA at some point and don’t already contribute to a Roth IRA, it may make sense to open an account and make at least one contribution now, if possible, so the 5-year clock starts ticking on this account. Roth 401(k)s have a 5-year aging requirement as well that is tracked separately from Roth IRAs. These rules don't need to be subsequently met again in the future, unlike Roth conversions, which have a new 5-year clock for each converted amount (however, the earnings follow the rule for either the plan or the Roth IRA). If you earn too much to contribute to a Roth IRA, you do have options. Read Viewpoints on Fidelity.com: [Do you earn too much for a Roth IRA?](https://www.fidelity.com/viewpoints/retirement/earn-too-much-contribute-Roth-IRA-conversion) ### 3\. IRA rollover without an in-plan conversion You can roll over after-tax contributions to a Roth IRA, and it is possible to do that before age 59½. There is a big catch, though: Not all plans allow withdrawals while you’re still with the company, and your retirement plan may have some rules around the requirements for rolling out of the plan. In-service withdrawals come with some potentially complicated rules, so it’s important to understand the rules the IRS has and those of your retirement plan. In general, to roll after-tax money to a Roth IRA, earnings on the after-tax balance must, in most cases, also be withdrawn. You may have a few options. If you have both pre-tax and after-tax contributions, you may be able to take a partial distribution from your retirement plan, consisting of just one or the other, if the plan separately tracks the sources of all of your contributions. In that case, you may want to roll out only the after-tax source balances directly into a Roth IRA. The pre-tax contributions, along with the earnings from both the pre-tax and the after-tax contributions, can be rolled to a traditional IRA, incurring no current income tax. Alternatively, you can roll everything into a Roth IRA, but you would need to pay income taxes on the pre-tax contributions and all of the earnings. Important note: Any partial withdrawals or in-plan conversions may affect eligibility for [net unrealized appreciation](https://www.fidelity.com/learning-center/personal-finance/retirement/company-stock) treatment on appreciated employer stock held in the plan. It's advisable to consult with a financial advisor before making any decisions. To find out more, read Viewpoints on Fidelity.com: [Rolling after-tax money in a 401(k) to a Roth IRA](https://www.fidelity.com/viewpoints/retirement/IRS-401k-rollover-guidance) ### Be sure to consider all your options Making after-tax contributions and then converting to Roth may seem complicated, but the long-term benefits can make it worthwhile. But bear in mind: there can be benefits to keeping your money in the workplace savings plan. Balances in your workplace retirement account may be available for loans, if your plan allows them, while balances in an IRA are not. On the other hand, IRAs have certain advantages as well. For instance, you may be able to get a broader range of investment choices. So it's a good idea to check with your financial advisor and tax advisor before choosing a strategy.
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