If you have a 401k through your employer's workplace, this one's for you!

Are you looking to supercharge your retirement savings? After-tax contributions to your 401(k) might be just the ticket! Beyond the standard annual deferral limit of $23,000 (or $30,500 if you're 50 or older), after-tax contributions provide a fantastic opportunity to boost your nest egg.

In total, you can contribute up to $69,000 annually to your 401(k) when combining deferrals and after-tax contributions ($76,500 if you're 50 or older). This strategy is particularly beneficial if you've already maxed out your regular 401(k) contributions and still have funds you want to save.

While these extra contributions don't provide an immediate tax deduction, the earnings grow tax-deferred until you withdraw them. Plus, there's an even bigger advantage: you can convert your after-tax contributions to a Roth IRA or Roth 401(k). This move allows you to potentially avoid taxes on the earnings forever!

Interested? Start by asking your 401(k) administrator if your plan allows for "after-tax contributions" and "in-plan conversions." Once you have the details, I can guide you through the next steps. Happy saving!

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