Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

This is a 401(k) question. So I think it's a tax question.

This is a 401(k) question...
This is a 401(k) question. So I think it's a tax question. My daughter left one company and went to another. Her start date at her new employer was Nov 13, 2017 and they automatically enrolled her in a 401(k) at 6% of her wages. At her former employer she has made 17,712 in contributions to a Roth 401(k) for 2017. What happens if she goes over $18k for the year? And if she cant put the 6% in a new Roth 401(k) then where should it go? The company offers three choices: What they describe as an employee pre-tax, an employee Roth 401(k), and After-tax non-Roth.
Show More
Show Less
Ask Your Own Tax Question
Answered in 36 minutes by:
11/28/2017
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,747
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Ask Your Own Tax Question

The amount she can defer to both plans can’t exceed her individual limit for the year.

If she does go over and the excess isn’t returned by April 15 of the next year, she could be subject to double taxation:

  • once in the year she deferred her salary, and
  • again when she receives a distribution.

If she is going to exceed the total then she can let them know now and put her money in a Roth outside the work plan for the remaining year (up to the ROTH allowed limit).

Ask Your Own Tax Question
Customer reply replied 2 months ago
she has also contributed $5500 to a Roth IRA for 2017

Then she just needs to let them know her limitation and wait for the new year.

There is just one month left.

I sincerely ***** ***** has been helpful.

A positive 5 star rating is appreciated so I am credited for assisting.

Ask Your Own Tax Question
Customer reply replied 2 months ago
ok and thank you.
The new employer has already started to contribute for 2017. So what should she direct them to put it in . The company offers three choices: What they describe as an employee pre-tax, an employee Roth 401(k), and After-tax non-Roth. obviously not the Roth 401k.

You are most welcome.
After tax non ROTH would be her only option. She will not receive any tax benefit now but at least she can contribute.

A positive 5 star rating is appreciated so I am credited for assisting.

Ask Your Own Tax Question
Customer reply replied 2 months ago
the After-tax non-Roth will not be considered IRA or 401k or be included in going toward her contribution limit?

If it is not a 401k or an plan in the company that is taken out before taxes are calculated.

Ask Your Own Tax Question
Customer reply replied 2 months ago
How do I know it's not a 401k? it is only described as an After-tax non-Roth.

Tell her to ask them. Some employers do have after tax 401k contributions but they are still limited to the annual amount.

Ask Your Own Tax Question
Customer reply replied 2 months ago
Right. Let me approach it a different way. If it turns out she over-contributes for 2017, can she fix it if it's withdrawn before she files her 2017 taxes?

Yes, by taking out the money before April 15th

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,747
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 2 months ago
good. I'm going to suggest then that she put it in the After-tax non-Roth for now and we will see what happens. At least she will get the company match.
I think that will do it for now. I will run all this by her.

That may be the best for now.

Thank you for the bonus, that was very generous of you.

Ask Your Own Tax Question
Was this answer helpful?
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,747
16,747 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

16,747 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
My client was the beneficiary of a roth IRA from his father.
My client was the beneficiary of a roth IRA from his father. Upon receiving it, he took the money out. Is this money taxable?… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
742 satisfied customers
In 2016 I had an excess contribution to my Roth IRA of 6500
In 2016 I had an excess contribution to my Roth IRA of 6500 and paid a penalty of 390- In 2017, I made no contribution to my Roth IRA Am I liable for a penalty in 2017?… read more
abci168
abci168
Principal
27 satisfied customers
I intend to to invest in a Roth IRA. When I take out the
I intend to to invest in a Roth IRA. When I take out the money upon retirement will I be taxed on any of the distributed money… read more
Brian Michels
Brian Michels
Partner, CPA
Bachelors of Business Administration
175 satisfied customers
Question in regards to roth IRA distribution and taxes. Roth
question in regards ***** ***** IRA distribution and taxes. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,374 satisfied customers
Lane, My wife had a Roth IRA that our financial advisor told
Lane,My wife had a Roth IRA that our financial advisor told us to move into a 529 plan.The 1099-R shows 8,100 as distribution and taxable amount of 8,100 (confused about this number, I dont think it s… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If I convert my 2017 contribution to my Roth IRA to a
If I convert my 2017 contribution to my Roth IRA to a Traditional IRA will I have to pay additional tax? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
16,747 satisfied customers
In 2008 finance advisor put me in a Roth IRA and i was 74
in 2008 Raymond finance advisor put me in a Roth IRA and i was 74 years old at that time and they knew that i had no earned income. in Feb of 2018 i found that this was totally done in error. What do … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
742 satisfied customers
In 2016 I contributed to a Roth IRA. I contributed $6,500.
In 2016 I contributed to a Roth IRA. I contributed $6,500. In 2107, I took distribution of the Roth IRA. The distribution was $6,416. Since I can take distribution at any time without penalities on th… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I live in Los Angeles... In Dec. 2014 I made a Roth IRA
I live in Los Angeles... In Dec. 2014 I made a Roth IRA contribution of $6500 to my IRA. I found out lately upon researching Roth IRAs that I made too much money that year ( $54000 wages and $161000 s… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a beneficiary Roth IRA from my mother. I made a
I have a beneficiary Roth IRA from my mother. I made a withdraw. during 2017. My 1099-R shows a distribution code T. Why am I being taxed on the amount? … read more
abci168
abci168
Principal
27 satisfied customers
I received an roth ira distribution for the first time which
i received an roth ira distribution for the first time which is less then my contributions over the years. I am under 59 1/2 . What excemption do I use on the the 5329 ? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
What forms are necessary to withdraw funds from a Roth IRA
what forms are necessary to withdraw funds from a Roth IRA due to disability … read more
abci168
abci168
Principal
27 satisfied customers
If I cash out my Roth Ira. I will obviously have a early as
If I cash out my Roth Ira. I will obviously have a early as our fee of 10% and then income taxes on top of that.For for instance. $14,000 roth 10% fee 17% fed tax rate 7% state income rateI end up wit… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Roth IRA question: If the Roth is at least 5 years old, can
Roth IRA question: If the Roth is at least 5 years old, can you use basis to pay for college expenses for your NIECE or Nephew? Or does it have to be immediate family? Looking for an alternative to a … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
What are tax rules for an inherited Roth IRA, GA, the
what are tax rules for an inherited Roth IRA JA: Since estate law varies from place to place, can you tell me what state this is in? Customer: GA JA: What documents or supporting evidence do you have?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
As I worked for a non-profit there was no Roth IRA for the
As I worked for a non-profit there was no Roth IRA for the 403-b. I got laid off last year and haven't been able to find another job. I moved my IRA to a well-known investing company. I am almost 62 a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
International attorney that can help with double Taxation
International attorney that can help with double Taxation treaty between US and Germany. A US Green card holder in the year 2014 worked in Germany more than 183 days as a doctor, but less than 330 day… read more
taxmanrog
taxmanrog
Master\u0027s Degree
824 satisfied customers
IRS said the Roth IRA reported distribution was not held for
IRS said the Roth IRA reported distribution was not held for at least 5 years. It was. I was told I needed to send in a 8606 with my 2014 tax return. How do I go about doing that so I don't own the $1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x