This lesser-known 401(k) feature can kickstart your tax-free retirement savings
For 2025, you can defer up to $23,500 into your 401(k), plus an extra $7,500 in "catch-up contributions" if you're age 50 and older. That catch-up contribution jumps to $11,250 for investors age 60 to 63.
Some plans offer after-tax 401(k) contributions on top of those caps. For 2025, the max 401(k) limit is $70,000, which includes employee deferrals, after-tax contributions, company matches, profit sharing and other deposits.
If you can afford to do this, "it's an amazing outcome," said certified financial planner Dan Galli, owner of Daniel J. Galli & Associates in Norwell, Massachusetts.
Here's a look at other stories impacting the financial advisor business.
"Sometimes, people don't believe it's real," he said, because you can automatically contribute and then convert the funds to "turn it into tax-free income."
However, many plans still don't offer the feature. In 2023, only 22% of employer plans offered after-tax 401(k) contributions, according to the latest data from Vanguard's How America Saves report. It's most common in larger plans.
Even when it's available, employee participation remains low. Only 9% of investors with access leveraged the feature in 2023, the same Vanguard report found. That's down slightly from 10% in 2022.
After-tax and Roth contributions both begin with after-tax 401(k) deposits. But there's a key difference: The taxes on future growth.
Roth money grows tax-free, which means future withdrawals aren't subject to taxes. To compare, after-tax deposits grow tax-deferred, meaning your returns incur regular income taxes when withdrawn.
That's why it's important to convert after-tax funds to Roth periodically, experts say.
"The longer you leave those after-tax dollars in there, the more tax liability there will be," Galli said. But the conversion process is "unique to each plan."
Often, you'll need to request the transfer, which could be limited to monthly or quarterly transactions, whereas the best plans convert to Roth automatically, he said.
Before making after-tax 401(k) contributions, you should focus on maxing out regular pre-tax or Roth 401(k) deferrals to capture your employer match, said CFP Ashton Lawrence at Mariner Wealth Advisors in Greenville, South Carolina.
After that, cash flow permitting, you could "start filling up the after-tax bucket," depending on your goals, he said. "In my opinion, every dollar needs to find a home."
In 2023, only 14% of employees maxed out their 401(k) plan, according to the Vanguard report. For plans offering catch-up contributions, only 15% of employees participated.
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Business Wire
10 hours ago
- Business Wire
Venu Holding Corporation Reports Second Quarter 2025 Financial Results
COLORADO SPRINGS, Colo.--(BUSINESS WIRE)--Venu Holding Corporation ("VENU" or the 'Company') (NYSE American: VENU), a developer, owner, and operator of upscale live music venues and premium hospitality destinations, announced today its second quarter and six months results for the period ended June 30, 2025. Total assets increased to $242.0 million, up 36% or $63.6 million, from year-end 2024 Share 'This quarter was about execution and acceleration,' said J.W. Roth, Founder, Chairman & CEO of VENU. 'Our pipeline is roaring,' Roth continued. 'We're in conversations with 38 municipalities nationwide that are interested in seeing VENU within their community. We broke ground on our 20,000-seat year-round Sunset Amphitheater in McKinney and advanced key projects across Colorado, Oklahoma, and Texas. We are well on our way to opening three new outdoor amphitheaters in 2026 and one new indoor entertainment campus, with potentially four more in 2027.' 'Our capital strategy is equally robust. We've engaged Texas Capital Securities on private debt financing options intended to accelerate amphitheater construction, with expected total commitments of approximately $200 million. Demand for VENU's long-term, income-producing Luxe FireSuite fractional ownerships is unlike anything we've seen before. Our triple-net real estate lease program, launched in May with Sands Investment Group, has exceeded our expectations. For a brand-new asset class, the reception has been phenomenal. We've already surpassed record FireSuite sales, and with projections pushing toward our goal of $200 million, it's clear we're building something that's changing the game.' 'Here's the deal: VENU is changing the live entertainment industry forever. From expanding our partnership with Aramark Sports + Entertainment to making waves with our Billboard announcement, every move is part of a bigger play. Behind the scenes, we are stacking our roster, scaling smarter, forging game-changing alliances, developing next-gen revenue models, and doing whatever it takes. What's coming next will shatter expectations and redefine the industry as we know it. Here we go!' Financial Highlights for the Second Quarter of 2025 and the Six-Month Period Ended June 30, 2025 Total assets increased to $242.0 million, up $63.6 million or 36%, as of June 30, 2025, from $178.4 million at December 31, 2024. Property and equipment increased to $199.2 million, up $62.0 million or 45%, as of June 30, 2025, from $137.2 million at December 31, 2024. Luxe FireSuite and Aikman Club sales reached $61.3 million through June 30, 2025, up $15.5 million or 34%, from $45.8 million from June 30, 2024. This included sales of Luxe FireSuites through traditional cash sales, fractional financing, and the start of triple-net lease interests in FireSuites, as well. Total revenue of $4,487,307 rose 7% or $312,069 for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 of $4,175,238. The overall increase in the three months ended June 30, 2025 was primarily attributable to Ford Amphitheater being open in the three months ended June 30, 2025 compared to not yet being open for the three months ended June 30 2024. Amphitheater operations generated net revenue to Venu (defined as profit after Venu's split with AEG Presents Rocky Mountains, the operator of the amphitheater), with receipts from our naming rights agreements (which are outside of Venu's AEG partnership agreement), combined for $597,712 for the three months ended June 30, 2025. Over the 2025 season of 10 shows at Ford Amphitheater through June 30, 2025, this location generated gross receipts of $4.7 million. These gross receipts, which are inclusive of ticket sales, concessions, ticketing fees, premium upgrades, as well as other receipts, are subject to the split with AEG. The Ford Amphitheater had more than 35,000 attendees for the first 10 shows through June 30, 2025, with an average ticket price of $135. Operational Highlights for Q2 and Subsequent Events: May 2025 Kicked off the first full season of the Pollstar-nominated Ford Amphitheater in Colorado Springs, CO, completing the first 10 shows on the path to a full calendar outdoor concert season. June 2025 In partnership with the City of McKinney, the McKinney Economic Development Corporation, and the McKinney Community Development Corporation, held a grand groundbreaking ceremony for the ultra-lux 20,000-seat Sunset Amphitheater powered by EIGHT Elite Light Beer, marking a new area for live music in North Texas. The event featured a legendary song swap from some of Texas's most beloved singer-songwriters, Robert Earl Keen and Turnpike Troubadours' Evan Felker. Announced a three-year industry alliance with global music authority, Billboard, to spotlight our fan-founded, fan-owned model through high-profile collaborative industry experiences. At the forefront of the partnership is the newly minted 'Disruptor Award,' presented by VENU to honor artists, creators, and industry leaders with bold ideas shaping the future of music, inspired by VENU Founder, Chairman, and CEO, J.W. Roth. Formed a multi-venue partnership, including an equity investment in VENU with Aramark Sports + Entertainment, to deliver a market-leading standard for guest experiences across flagship amphitheaters in Oklahoma, Texas, and Colorado. Under the agreement, Aramark will provide food and beverage, retail, and facilities management services, enhancing VENU's signature premium fan-first offerings such as Luxe FireSuites and the members-only Aikman and Owners' Clubs. July 2025 Appointed Texas Capital Securities as exclusive financial advisor to arrange approximately $200 million in potential private capital debt financing intended to accelerate amphitheater construction in Texas and Oklahoma. Supporting a significant backlog of Luxe Firesuite receivables, having sold more than $75 million in 2024, and expected to reach $200 million outside of triple-net (NNN) real estate lease opportunities in 2025. As announced back in May, VENU's partnership with Sands Investment Group to offer triple-net (NNN) real estate lease opportunities for Luxe FireSuites has generated extraordinary demand, surpassing expectations. Based on the early trajectory, the program is projected to deliver more than $100 million in additional annual capital. Conference Call Details About Venu Holding Corporation Venu Holding Corporation ("VENU") (NYSE American: VENU), founded by Colorado Springs entrepreneur J.W. Roth, is a premier hospitality and live music venue developer dedicated to building luxury, experience-driven entertainment destinations. VENU's campuses in Colorado Springs, Colorado, and Gainesville, Georgia, each feature Bourbon Brothers Smokehouse and Tavern, The Hall at Bourbon Brothers, and, unique to Colorado Springs, the more than 9,000-seat Ford Amphitheater and Roth's Sea and Steak. Expanding with new Sunset Amphitheaters in Oklahoma and Texas, VENU's upcoming large-scale venues will host between 12,500 and 20,000 guests, continuing VENU's vision of redefining the live entertainment experience. Click here for company overview. VENU has been recognized nationally by The Wall Street Journal, The New York Times, Denver Post, Billboard, VenuesNow, and Variety for its innovative and disruptive approach to live entertainment. Through strategic partnerships with industry leaders such as AEG Presents and NFL Hall of Famer and Founder of EIGHT Elite Light Beer, Troy Aikman, VENU continues to shape the future of the entertainment landscape. For more information, visit VENU's website, Instagram, LinkedIn, or X. Forward Looking Statements Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in the Company's filings and reports with the SEC, not limited to Risk Factors relating to its business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements, whether as a result of new information, future events, or otherwise, except as required by law. (in US Dollars) As of December 31, 2025 2024 ASSETS Unaudited Audited Current assets Cash and cash equivalents $ 37,431,978 $ 37,969,454 Inventories 194,117 225,283 Prepaid expenses and other current assets 1,242,140 850,951 Total current assets 38,868,235 39,045,688 Other assets Property and equipment, net 199,201,653 137,215,936 Intangible assets, net 177,917 211,276 Operating lease right-of-use assets, net 1,174,192 1,351,600 Investment in EIGHT Brewing 1,999,999 - Investment in related parties 555,262 550,000 Security and other deposits 68,265 43,015 Total other assets 203,177,288 139,371,827 Total assets $ 242,045,523 $ 178,417,515 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 4,501,312 $ 7,283,033 Accrued expenses 6,808,828 3,556,819 Accrued payroll and payroll taxes 156,709 262,387 Deferred revenue 1,888,889 1,528,159 Current portion of convertible debt - 9,433,313 Current portion of operating lease liabilities 363,937 364,244 Current portion licensing liability 223,333 - Current portion of long-term debt 337,938 2,101,501 Total current liabilities 14,280,946 24,529,456 Long-term portion of operating lease liabilities 842,775 1,020,604 Long-term licensing liability and other liabilities 8,483,056 7,950,000 Long-term convertible debt 2,990,175 - Long-term debt, net of current portion 41,480,226 14,100,217 Total liabilities $ 68,077,178 $ 47,600,277 Commitments and contingencies - See Note 14 Mezzanine Equity Contingently Redeemable Convertible Cumulative Series B Preferred Stock, $0.001 par-675 authorized, 675 issued and outstanding at June 30, 2025 $ 10,125,000 $ - Stockholders' Equity Preferred stock, $0.001 par - 5,000,000 authorized, none issued or outstanding - - Series A Preferred Stock, $0.001 par - 4,750,000 authorized, none issued outstanding at June 30, 2025 - - Common stock, $0.001 par - 144,000,000 authorized, 40,080,292 issued and outstanding at June 30, 2025 and 37,471,465 issued and outstanding at December 31, 2024 40,080 37,472 Class B common stock, $0.001 par - 1,000,000 authorized, 379,990 issued and outstanding at June 30, 2025 and December 31, 2024 379 379 Additional paid-in capital 168,490,516 144,546,368 $ 91,688,804 $ 97,223,011 Treasury Stock, at cost - 276,245 shares at June 30, 2025 and December 31, 2024 (1,500,076 ) (1,500,076 ) Total Venu Holding Corporation and subsidiaries equity $ 90,188,728 $ 95,722,935 Non-controlling interest 73,654,617 35,094,303 Total stockholders' equity $ 163,843,345 $ 130,817,238 Total liabilities and stockholders' equity $ 242,045,523 $ 178,417,515 Expand (in US Dollars) For the six months ended June 30, 2025 2024 Net loss $ (31,736,344 ) $ (21,085,184 ) Adjustments to reconcile net loss to net cash used in operating activities: Equity issued for interest on debt 291,680 229,400 Equity based compensation 13,024,382 3,255,506 Equity issued for services 277,900 7,000,000 Project abandonment loss - 668,402 Amortization of debt discount 2,332,923 1,134,815 Non cash lease expense 184,741 268,635 Depreciation and amortization 2,749,776 1,215,793 Noncash financing expense - 2,500,000 Non cash interest 496,583 - Changes in operating assets and liabilities: Inventories 31,166 (25,922 ) Prepaid expenses and other current assets (391,189 ) (28,097 ) Security deposit (25,250 ) 325,026 Accounts payable (2,781,721 ) 7,829,502 Accrued expenses 3,235,134 (142,528 ) Accrued payroll and payroll taxes (105,678 ) (98,149 ) Deferred revenue 360,730 506,378 Operating lease liabilities (185,469 ) (235,819 ) Licensing liabilities 756,389 2,800,000 Net cash used in operating activities (11,484,247 ) 6,117,758 Cash flows from investing activities Purchase of property and equipment (37,211,382 ) (31,259,314 ) Investment in EIGHT Brewing (1,999,999 ) - Investment in related party (5,262 ) - Cash acquired in acquisition of 13141 BP - 74,085 Net cash used in investing activities (39,216,643 ) (31,185,229 ) Cash flows from financing activities Proceeds from sale of non-controlling interest equity 24,454,237 22,895,000 Proceeds from issuance of Contingently Redeemable Convertible Cumulative Series B Preferred Stock 10,125,000 - Distributions to non-controlling shareholders (251,785 ) (271,132 ) Principal payments on long-term debt (164,038 ) (153,001 ) Proceeds from issuance of shares - 25,251,341 Proceeds from exercise of warrants - 52 Payment for personal guarantee on convertible debt - (100,000 ) Payment of promissory note (2,000,000 ) - Receipt of convertible promissory note 18,000,000 - Net cash provided by financing activities 50,163,414 47,622,260 Net (decrease) increase in cash and cash equivalents (537,476 ) 22,554,789 Cash and cash equivalents, beginning 37,969,454 20,201,104 Cash and cash equivalents, ending $ 37,431,978 $ 42,755,893 Cash paid for interest $ 230,467 $ 189,992 Supplemental disclosure of non-cash operating, investing and financing activities: Property acquired via convertible debt $ - $ 10,000,000 Property acquired via promissory note $ 25,000,000 $ - Conversion of convertible debt and interest to common equity $ 25,000,000 $ - Debt discounts - warrants $ 1,486,329 $ 3,000,140 Accrued preferred stock dividends $ 16,875 $ - Expand
Yahoo
13 hours ago
- Yahoo
There's a good chance you're making a simple mistake when it comes to money, Vanguard says. How to make sure you're not missing out on any gains.
Many Americans miss out on high-yield savings due to a low of awareness of interest rates. A Vanguard survey shows 57% of people earn under 3% on savings, with many unaware of better options. Interest rates may drop soon, but returns should stay above inflation, which is currently 2.7%. There's a good chance "your money could be making a lot more money," says Kate Byrne, Vanguard's head of Cash Plus distribution. With short-term interest rates still relatively high, it's a great time to earn essentially risk-free, inflation-beating returns on your cash. But a majority of Americans are missing out on these easy gains, Byrne told Business Insider. According to a Vanguard survey of 1,011 respondents published in March, at least 57% of Americans are earning less than 3% a year on their cash savings. Eight percent said they have their savings in physical cash, meaning they're yielding nothing; 16% are earning less than 1%; and 33% are earning 1%-3%. This suggests that even if savers are aware enough to move their money to an account or product with a higher interest rate than the standard checking or savings account — the annual yield on which is under 0.5% — they're still not capitalizing on the highest-yielding products on the market. "If it's below 3% you should be looking," Byrne said. "You should be finding a vehicle that has a better rate than that, and also has the features you need, whether that's FDIC insurance or the ability to move money seamlessly." High-yield savings accounts, certificates of deposit, and money market rates can vary by institution, length of deposit, and the amount deposited. Money-market funds, which hold cash equivalents like ultra low-risk short-term Treasurys, are more liquid than other products CDs, for instance, often force investors to pay a penalty if they pull their money out before the maturity date. Here are examples of some money market accounts — which you can invest in through a brokerage account with a firm like Charles Schwab or Fidelity — yielding above 4% as of August 1, according to Bankrate: JPMorgan Prime Money Market Fund (VMVXX): 4.05% Fidelity Money Market Fund (SPRXX): 4.03% Invesco Government Money Market Fund (INAXX): 4.12% Vanguard Federal Money Market Fund (VMFXX): 4.23% The Vanguard survey data showed that 60% Americans feel they don't fully understand the interest-rate landscape and how it affects their savings. "Not only are they sort of not even clear on what APY is and how it affects their savings, but, likely because they're not clear on it, they're earning less than they could be in a more high-yielding product," Byrne said, referencing the common acronym for annual percentage yield. Young savers are less likely to understand interest rates and more likely to be missing out on returns, the data also shows. Sixty-seven percent of Gen Z savers are earnings less than 3%. Among millennials, that number is 59%. Byrne said that savers often miss out on these returns because switching banks or moving money to different accounts isn't top of mind. "You would be shocked at the number of people who are still in the bank account they opened up when they were in college or even high school, because they needed somewhere to put that first paycheck," Byrne said. "And then inertia kicks in and you've got bills connected to it, and life just moves really fast and many things seem more important." It's unclear how long cash-equivalent investments will continue to deliver strong returns. Short-term interest rates, which track closely with the fed funds rate, are expected to come down in September and later this year. Markets are placing a 99% chance that the Federal Reserve will slash rates by 0.25% next month. Still, with the fed funds rate between 4.25% and 4.5%, returns should remain above the inflation rate, which was 2.7% year-over-year in July. Read the original article on Business Insider
CNBC
16 hours ago
- CNBC
Trump's ‘big beautiful bill' makes Roth conversions more complicated — here's what to know
If you're eyeing a Roth conversion, President Donald Trump's "big beautiful bill" could make the strategy more complicated, according to financial experts. Roth conversions transfer pretax or nondeductible individual retirement account funds to a Roth IRA, which starts future tax-free growth. The trade-off is paying regular income taxes on the converted balance. Trump's new tax cuts could make Roth conversions more appealing for some investors, experts say. But incurring too much income could impact eligibility for certain tax breaks. More from Personal Finance:What to do with RMDs when you don't need the moneySocial Security COLA may be 2.7% in 2026: estimatesOlder student loan borrowers face high delinquency rates When weighing Roth conversions, you need to know the multi-year state and federal tax impact, said Judy Brown, a certified financial planner who works at SC&H Group in the Washington, D.C., and Baltimore area. For example, if you're nearing Medicare age or already enrolled, boosting your earnings could increase income-related monthly adjustment amounts, or IRMAA, for Medicare Part B and Part D premiums. The strategy is "looking at a lot of different pieces, and figuring out the optimal place for each client," said Brown, who is also a certified public accountant. Roth conversions have always been about "tax bracket management," said CFP Patrick Huey, owner of Victory Independent Planning in Portland, Oregon. When making Roth conversions, advisors typically incur enough regular income to "fill up the lowest brackets," he said. Your federal brackets are based on each part of your "taxable income," which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income. Before Trump enacted the One Big Beautiful Bill Act, lower federal income tax brackets were scheduled to sunset after 2025, which would have made converted balances more expensive. Trump's legislation made the lower tax rates permanent, but several new tax breaks — deductions for older Americans, tipped workers and consumers with overtime pay and car loan interest — are temporary with varying earnings limits. These tax breaks, which are available from 2025 through 2028, could offer more room for Roth conversions before hitting the next tax bracket, experts say. Once these cuts expire, you could be "paying more for the exact same Roth conversion," said CFP Ashton Lawrence at Mariner Wealth Advisors in Greenville, South Carolina. While Trump's new tax cuts could make more space in the lower tax brackets, higher income from Roth conversions can impact eligibility, experts say. For example, the additional $6,000 deduction for older Americans starts to phase out, or get smaller, once modified adjusted gross income exceeds $75,000 for single filers or $150,000 for married couples filing jointly. It probably still makes sense to convert funds at 22% or 24% tax rates now — and skip the $6,000 deduction — to avoid the 30% brackets for large pre-tax required withdrawals later, Brown said. Most retirees must take required minimum distributions, or RMDs, from pretax retirement accounts starting at age 73 or face an IRS penalty.
