1) Before tax 401k contribution: All withdraw from your account is will be your income for that year.2
2) after tax 401k contribution: the original contribution will not be taxed. The earning/return from your contribution will be taxed as part of your income.
Your broker know how much earning/original contibution from your accout.
1. 普通401（K）里的contribution，分before tax和after tax的。Before tax money, all distribution will be taxed as ordinary income (contribution + capital gani). After tax contribution will become a "tax basis". When distributed, the distributed amount will be prorated and the part of "tax basis" is not taxable.
2. Roth 401(K), if account was set up 5 years before distribution and distribution occurs after 59.5 yls, all distribution is tax free.
有人有这个经验么。
假如你退休了，工作了30年，每年401K放满，然后退休的时候往外取，大概多少比例是CAPITAL GAIN。这个怎么算啊，FIFO？
如果你想知道你赚了多少，你需要查30年contribution的记录，基本上就是30年的W2。
balance － contribution = gain
is met, there is no income tax or capital gains tax on the gain with a Roth 401k.
1) Before tax 401k contribution: All withdraw from your account is will be your income for that year.2
2) after tax 401k contribution: the original contribution will not be taxed. The earning/return from your contribution will be taxed as part of your income.
Your broker know how much earning/original contibution from your accout.
regular 401K: 通通income tax rate, 没必要区分contribution or capital gains
Roth 401K: 通通不交税
After tax 401k: aka Maga 401K, brokerage firm 会帮你分清contribution （取出时不交税）vs capital gains (要交税）
这是我的工作之一
1. 普通401（K）里的contribution，分before tax和after tax的。Before tax money, all distribution will be taxed as ordinary income (contribution + capital gani). After tax contribution will become a "tax basis". When distributed, the distributed amount will be prorated and the part of "tax basis" is not taxable.
2. Roth 401(K), if account was set up 5 years before distribution and distribution occurs after 59.5 yls, all distribution is tax free.