There are multiple vehicles people can use to save for retirement and one of them is a 401(k). These workplace retirement accounts can be used to house pre-tax and after-tax dollars that can grow tax-deferred or tax-free until retirement. While 401(k)s usually have an annual employee contribution limit, the savings don’t have to stop there. People with more money they want to invest for retirement can use after-tax 401(k) contributions. What Is an After Tax 401(k) An after-tax 401(k) contribution is when you place post-tax dollars or dollars you’ve already paid taxes on into your 401(k) account. Since you’ve already paid taxes on the money, you cannot receive a tax deduction on these dollars. However, a major benefit of putting after-tax dollars into a 401(k) is that the money grows tax-free until you can withdraw during retirement. You can also withdraw contributions you’ve made without paying taxes or penalties. It’s important to note that not every employer offers an after-tax 401(k), so check if it’s an accessible option. Breaking Down the 401(k) Contribution Limit 401(k) accounts have an employee contribution limit of $23,000 in 2024,