401k After-Tax Contributions Can Supercharge Your Savings

In this episode of the 401k Podcast, Lucas and Luna explore a little-used 401k feature: after-tax contributions. Unlike Roth contributions, after-tax contributions can be rolled into a Roth IRA tax-free through an in-plan Roth conversion, enabling the mega backdoor Roth strategy. Lucas breaks down the difference between designated Roth contributions and after-tax contributions, how to check if your plan supports them, and the five-year rule for gains. Luna asks about plan limits and the practical steps to set this up. They also discuss why most employees ignore this option and how auto-escalation could change that. A concrete example shows how $20,500 in after-tax contributions could compound to over $400,000 in 20 years. Tune in to learn if your 401k plan has this hidden supercharging feature. #401k #AfterTaxContributions #MegaBackdoorRoth #RothIRA #InPlanConversion #RetirementSavings #PersonalFinance #EmployerRetirementPlan #TaxStrategy #CompoundInterest #FiduciaryRule #PlanDesign #FexingoBusiness #BusinessPodcast #Finance #RetirementPlanning #Investing #WealthBuilding Keep every episode free: buymeacoffee.com/fexingo