401k Critical Mistake #2 (2026): After-Tax 401k Contributions Left Unconverted

Have you already made after-tax contributions to your 401k? If so, the contribution itself may not be the issue. The larger question is whether those dollars are still sitting inside the plan unconverted. In this episode of The Critical Mistakes Series™, David Dunn explains 401k Critical Mistake #2: leaving existing after-tax 401k contributions inside the plan without understanding how the earnings may be taxed over time. For many executives, making after-tax contributions is the part they get right. But if those dollars remain unconverted, the earnings attached to them may accumulate in a tax environment that creates a different outcome than intended. This episode explores why the original contribution may be treated differently from the earnings, how a Roth IRA rollover may help in certain situations, and why the next step should be reviewed before assuming the strategy is complete. Topics covered include: • Why after-tax 401k contributions can look complete before they are • How earnings on after-tax contributions may become taxable when distributed • Why a Roth IRA rollover may be worth evaluating • What executives should consider before moving existing 401k after-tax dollars This strategy is not automatic, and it is not right for everyone. Plan rules, rollover procedures, creditor protection, tax reporting, and NUA considerations may all affect the decision. This episode is part of The Critical Mistakes Series™, which highlights costly 401k mistakes executives can make when routine decisions are handled without the right coordination. To learn more about David Dunn and The Critical Mistakes Series™, visit DAVIDDUNN.COM. Subscribe for more insights on executive planning, tax efficiency, and strategic wealth coordination. David Dunn Wealth, LLC (DDW) is a member firm of The Fiduciary Alliance, LLC (TFA), a Securities and Exchange Commission registered investment advisor. See full disclosure at www.daviddunn.com. This content is for informational purposes only and should not be construed as investment advice or an offer to buy or sell securities or other financial products. DDW does not provide accounting services. While information is based on sources deemed reliable, its accuracy is not guaranteed. DDW is independent and not affiliated with, endorsed by, or sponsored by Boeing, Microsoft, or their affiliates. Any reference is for illustrative purposes only. Always consult your own advisor before making financial decisions.