### FAQ

#### Are after-tax 401(k) contributions worth it?
After-tax 401(k) contributions can be worth it for high-income earners who want to save money on taxes. It allows individuals to contribute more money to their retirement account and take advantage of tax-deferred growth on those contributions. However, it’s important to consider all your retirement account options and consult with a financial advisor to determine if after-tax contributions are right for you.

#### How can I make after-tax contributions to my 401(k)?
If you are a W-2 employee, you can make after-tax contributions if your employer’s 401(k) plan allows it. You can adjust your contributions on the plan’s website. If you are self-employed, you can only contribute after-tax if your individual 401(k) plan allows it. You will need to review your 401(k) documents or speak with customer support to determine if after-tax contributions are an option.

#### What is the difference between Roth and after-tax 401(k) contributions?
The main difference between Roth and after-tax 401(k) contributions is how the earnings are taxed. With after-tax contributions, the earnings grow tax-deferred but are taxed as regular income when withdrawn. Roth contributions, on the other hand, are already taxed, so the IRS will never tax the contributions or earnings again. Most investors aim to convert after-tax contributions to Roth contributions to take advantage of tax-free growth.

### Conclusion
After-tax 401(k) contributions can be a valuable tool for high-income earners looking to maximize their retirement savings and tax advantages. By understanding how after-tax contributions work and exploring strategies like the Mega Backdoor Roth, individuals can optimize their retirement savings and potentially reduce their tax burden. It’s important to carefully consider your financial goals and consult with a financial advisor to determine if after-tax contributions are the right choice for your retirement strategy.