So I know the standard advice is ALWAYS go up to the match in your employer 401k plan because it's FREE MONEY. But......I have an issue with mine.
My plan is a 10% match on up to 15% of contributions. Basically, if I make 100k, I would put in 15,000 and the match would be 1,500. Obviously I have to invest 15% to get the full match.
The problem comes in the form of a weird characteristic of my plan; the match only applies to Traditional 401k, not the Roth 401k. I've asked this question in other places before and I get the "my employer match goes into the traditional, even if I'm investing in Roth, check on that." I can 100% assure you I get no match on the Roth 401k contributions.
That said, I feel very uncomfortable having ALL of my 401k tied up in a traditional, having to pay taxes on all the distributions when that time comes. I don't want to save more than 15% into 401k, as I want to save for other diversified things.
Would you forego a small percentage of match to put it in the Roth 401k so the earnings would come back tax deffered? Maybe 10% in traditional (effectively going from a 1.5% match to a 1% match) and 5% in roth?