401(k) Plans

Articles and resources related to 401(k) Plans.

Roth IRAs: Is Now the Ideal Time to Consider a Conversion?

Kevin Koski, CPA
Principal Tax Advisor
Published November 1, 2019

Carlson Capital Management works with many clients each year to implement a Roth IRA conversion strategy in which a portion of their tax deferred accounts (i.e. 401(k), IRA) are converted to a Roth IRA. Generally speaking, the long-term benefits of a conversion strategy are measured by comparing the amount of taxes paid today upon conversion versus the taxes avoided in the future on all of the investment earnings and growth accruing after the conversion. Many will avoid paying the taxes today on ... [Continue Reading]

Should I Contribute to a Roth 401(k) Instead of the Traditional 401(k)?

Kevin Koski, CPA
Principal Tax Advisor
Published July 17, 2019

With many employer-based retirement plans (i.e. 401(k) or 403(b) plans) now offering a choice between making contributions into a Roth or a Traditional option, a conversation we frequently have with clients centers on the difference between contributing to one versus the other. As with most financial and tax planning questions, the answer depends a great deal on your personal situation, but there are several factors that are generally the most important to consider in deciding if a Roth is a ... [Continue Reading]

An Update from the Tax Team: Insights on After-Tax Contributions into a 401(k) Plan

Kevin Koski, CPA
Principal Tax Advisor
Published April 12, 2016

While the 2016 defined contribution plan limits for 401(k) plans remain unchanged as compared to 2015, participants should now give extra consideration to making additional after-tax contributions (if allowed by the plan) due to recent changes in tax regulations. Under IRS Notice 2014-54, the IRS has agreed that a plan participant can now directly roll over pre-tax account balances into a Traditional IRA account, and after-tax account balances into a Roth IRA account. What this means is that ... [Continue Reading]