Question about Roth 401k | TigerDroppings.com

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CQQ
New Orleans Saints Fan
Member since Feb 2006
12011 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?








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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1634 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.






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Coeur du Tigre
LSU Fan
Waiting for Geauxdeaux.
Member since Nov 2008
358 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.






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jimbeam
USA Fan
University of LSU
Member since Oct 2011
33641 posts
 Online 

re: Question about Roth 401k


Yep





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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30526 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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