I'm relatively new in the workforce, and have been contributing to a Roth 401k up to my employer match. My employer matches 50% of contributions up to a 6% contribution. So right now, I contribute $150 of post-tax dollars to the Roth 401k, and my company contributes $75 each pay period.
I had assumed those matching contributions were post-tax dollars, but in researching, find out the company contribution is pre-tax.
My question is: Am I losing out on company matching dollars by contributing to the Roth instead of Traditional 401k? If I contributed pre-tax dollars, say its now $200 instead of $150, my match is $100 instead of $75 right? Essentially my contribution is the same assuming the same tax rates forever, but the employer match is better for the traditional 401k than roth 401k because the $100 and $75 are treated the same tax-wise.
Am I missing something? I've never seen this taken into account, so I must be thinking incorrectly.
Thanks for the responses in advance!