Author Topic: Confused about roth 401k contributions  (Read 2491 times)

blackjack

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Confused about roth 401k contributions
« on: March 15, 2014, 09:42:51 AM »
I noticed that the percent of my pay that goes into my roth comes from my gross pay...
I usually gross around 1500 and take home around 1000 after taxes.. so 15% comes from the 1500 and not the 1000.
I thought roth was after taxes.... When is the money in my roth taxed?

AlanStache

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Re: Confused about roth 401k contributions
« Reply #1 on: March 15, 2014, 10:25:51 AM »
Depends on the type of roth, you dont give any details so I would suggest reading up at

http://en.wikipedia.org/wiki/Roth_IRA


Joel

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Re: Confused about roth 401k contributions
« Reply #2 on: March 15, 2014, 10:29:20 AM »
I'm not sure what exactly you are trying to ask. The Roth contributions reduce what you take home, without reducing your taxable income since it is taxed now.

Eric

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Re: Confused about roth 401k contributions
« Reply #3 on: March 15, 2014, 11:42:30 AM »
If it's happening as you're describing, it sounds you have a regular 401k not a Roth 401k.  Talk to your plan administrator and figure out the details.

blackjack

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Re: Confused about roth 401k contributions
« Reply #4 on: March 15, 2014, 12:16:58 PM »
Yeah thats what im thinking.... BUt on my paycheck and under my account it is stated at ROTH CONTRIBUTIONS, but i'lll find out for sure

WFUDEAC

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Re: Confused about roth 401k contributions
« Reply #5 on: March 15, 2014, 01:22:53 PM »
Traditional or Roth your contribution amount will be contribution percentage x gross pay. If you are contributing to a traditional 401K then your taxable income is gross pay less your 401K contribution where as if you are contributing to a ROTH 401K then your taxable income is equal to your gross pay (I am ignoring other pre-tax deductions such as healthcare, HSA, etc).

blackjack

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Re: Confused about roth 401k contributions
« Reply #6 on: March 15, 2014, 02:51:39 PM »
I think this was around 8% or something going into my 401k

gross 1,405.78   
taxed 427.69   
UNIONDUE  38.00       
 TEAMSTER ROTH     98.40
NET:  840.69

Joel

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Re: Confused about roth 401k contributions
« Reply #7 on: March 15, 2014, 03:17:13 PM »
Some companies calculate it as a percentage of your base pay and do not include overtime or anything else. So it's not always gross pay.