Does your employer match post tax 401k contributions?

[ixtap]

I hadn't really thought about it. I have a solo 401k, but SO is a W2 employee who hasn't been much interested in learning about the extra contributions.

However, clicking around the interwebz, as I am wont to do, I read something that implied that some employers match the post tax contributions as well. If this is at all a thing, SO is more likely to look into it, as it would be a 10% match.

I only know that they allow post tax contributions because it was a suggested use of their bonus in the open enrollment materials they mail out. It was a short paragraph with a pretty picture, so no details, no mention of in service rollovers.

[JLee]

Do you mean matching Roth vs matching Traditional contributions?  As I understand it, employer match is Traditional (pre-tax), regardless of the employee's contribution method of choice.

[ixtap]

Do you mean matching Roth vs matching Traditional contributions?  As I understand it, employer match is Traditional (pre-tax), regardless of the employee's contribution method of choice.

No, I am referring to the after tax space above and beyond the traditional or Roth contribution limits. The space used for mega backdoor Roth, when plans allow for it.

Your response is another interesting detail, though. I would have thought that Roth contributions get Roth matching, but again I never looked into it.

[MM_MG]

Match is up to X percent whether it is pre- or post- tax contribution.  Just need a contribution every pay period.

I hit my pre-tax contribution before the end of the year, but I do a post-tax contribution every pay period in order to get the match every pay period.  They do a true-up in the first quarter each year, but I figure I'd rather have my/their money sooner.

[terran]

Is her match like most companies where they match 10% of salary as long as she contributes at least 10% of salary? If so, then she'd have to make over $180k ($185k in 2018) before they would start matching after tax.

Or do they match 10% of all contributions? In which case it could be worth looking into even if she doesn't make $180k.

[ixtap]

Is her match like most companies where they match 10% of salary as long as she contributes at least 10% of salary? If so, then she'd have to make over $180k ($185k in 2018) before they would start matching after tax.

Or do they match 10% of all contributions? In which case it could be worth looking into even if she doesn't make $180k.

They match contributions. There are brackets, like 100% of x, then 50% of y, and the last bracket is "10% of additional contributions."


As we understand the HR open enrollment blurbs, the only way to make this contribution is by deduction from your bonus, and we assume it is only the cash portion of the bonus, so it won't be very mega, but if there is a match...

Let me tell you, the possibility of a 10% match finally opened some ears to the backdoor Roth. Questions with be asked st work and/or Fidelity.

[alexpkeaton]

Mine matches 5% on all contributions, pre-tax, Roth, or after-tax. Matching contributions are always credited to the pre-tax segment of the account. I don't think my company does any true-up, but this makes it possible to get all possible matching funds without needing to worry about when I'll hit the $18k ceiling.

Not sure just yet how to do an in-service withdrawal. There's nothing on the website about it except to say I need to call them.

[EricEng]

My company matches up to 50% of 8% of your salary.  So if you put in 8% of your weekly pay, they put in 4% match.  This happens even if you max your pre tax 401k before end of the year as long as you put in post tax for each pay period as they spread the match over the entire year.  Which is annoying because I would prefer to max my pretax 401k early in the year and then stop, but then I miss out on the match.  However, there is no way to go over the 4% match since that is the max you get per pay period.

TLDR: Yes, some companies match post tax. 

[ixtap]

Well, bah hum bug, after tax contributions are excluded from the match. We are still going to grab the Roth space with this year's bonus, but it isn't as good of a deal.

We also found that they do allow after tax contributions through payroll deductions, so we have some decisions and shuffling to plan for next year.

They better not change the rules about accessing your Roth contributions...