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Do employer 401k matches work the same on after tax contibutions?

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  • Do employer 401k matches work the same on after tax contibutions?

    I have a 401k that was offered to me only as a pre-tax option, so I elected to put 5% (that's what the company matches up to) into the 401k. I recently checked my account at Transamerica and noticed there is an option to switch my contributions to an after tax roth 401k. This obviously sounds like a more attractive option to me. My question is, does anyone know if the employer match will work the same way if I choose this option?

    Why was it not outlined at the time I signed up for the 401k? Seems odd. Just want to make sure I'm understanding everything properly before I make changes to my 401k contributions.

  • #2
    The Roth 401k option may have been added after you began participating, though you still should have been notified.

    The match should work the same either way. You can always call the HR department and ask.
    Steve

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    • #3
      My employer offers both Traditional and Roth 401k options ... I put all my 401k contributions to a Roth account on an after-tax basis. The match is the same as if I put in Traditional contriubtions but the match goes into a Traditional 401k, not into the same Roth account.

      For some reason, the IRS doesn't let companies put the match in a Roth account. The matching amount is the same whether you contribute to Roth or Traditional, but the match ALWAYS goes into a Tradtional account, even if your contributions are to a Roth.

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