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?

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Posted by RickAstley

Reno, Nevada

Member since May 2011

1994 posts

Posted on 10/8/13 at 10:11 am to CQQ

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.

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Posted by Coeur du Tigre

It was just outside of Barstow...

Member since Nov 2008

1477 posts

Posted on 10/8/13 at 10:43 am to RickAstley

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.

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Posted by jimbeam

University of LSU

Member since Oct 2011

75703 posts

Posted on 10/8/13 at 10:59 am to Coeur du Tigre

Yep

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Posted by foshizzle

Washington DC metro

Member since Mar 2008

40599 posts

Posted on 10/8/13 at 12:16 pm to RickAstley

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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