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CQQ
New Orleans Saints Fan
Member since Feb 2006
13978 posts

Question about Roth 401k

My company matches $1 for $1 to 6%. Right now, I contribute the full 6%. I'm a bit confused on what it means by "Roth Basic." Does that simply mean that taxes come out of my check THEN I contribute to my 401k? Does that mean I won't pay taxes when I withdraw? I assume I will have to pay taxes on my company match + all gains?




RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1674 posts

re: Question about Roth 401k
From what I am seeing, you are paying taxes on both your 6% + the matching 6% from your company. You will not owe any taxes on your Roth 401(k) when you withdraw since you are taxed before contributing.

One thing to consider is reducing your current tax burden from your company match by putting no more than what your company will match (6% of your salary) in your Roth 401(k) and any other contributions towards the traditional 401(k) to lower your income.


Coeur du Tigre
LSU Fan
Waiting for Geauxdeaux.
Member since Nov 2008
411 posts

re: Question about Roth 401k
quote:

One thing to consider is reducing your current tax burden from your company match by putting no more than what your company will match (6% of your salary) in your Roth 401(k) and any other contributions towards the traditional 401(k) to lower your income.
Good advice.


jimbeam
USA Fan
University of LSU
Member since Oct 2011
38001 posts
Online

re: Question about Roth 401k
Yep


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32159 posts

re: Question about Roth 401k
quote:

From what I am seeing, you are paying taxes on both your 6% + the matching 6% from your company. You will not owe any taxes on your Roth 401(k) when you withdraw since you are taxed before contributing.


Correct. With Roth you pay before contributing, non-Roth you pay when withdrawing.


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