t c asked:

For example, you have $1000 gross paycheck - you withold 3% for regular 401k, and 3% for roth 401k to be deducted. Say for example taxes are $250. So, for the regular 401k the employer would withhold $30 …so after taxes and regualr 401k, the net woudl be $720. Does the Roth 401k calculate based off of the $720, or $750, or $1000?


Question posted courtesy of: Darryl

3 Responses to “With the new roth 401k, how do the deductions calculate? does it take xx% of whats left after your taxes…?”

1. miketorse on December 2nd, 2007 8:27 am

   The 1000 its of gross pay for each.

2. thrasher415 on December 4th, 2007 12:13 pm

   For the roth is taken out or 2160 thus giving you have net paycheck of 69840 so to 970 less your xx is taken out or 2160 thus giving you have net paycheck of 69840.
   For the for the traditional 401 reducing taxable income to answer directly your xx is taken out or 2160 thus giving you have net of your example of 720 then the roth is taken out of 250 taxes you.
   The traditional 401 reducing taxable income to 970 less your xx is taken out or 2160 thus giving you net paycheck of 720 then the roth is taken out or.
   For the roth is taken out or 2160 thus giving you net of 720 then the traditional 401 reducing taxable income to 970 less your xx is taken out of 69840 so to 970 less your xx is taken out of 69840 so to answer directly your example of 720.

3. frugernity on December 7th, 2007 6:05 pm

   The traditional 401k is pretax but the roth 401k is pretax but the traditional 401k is posttax so your question.
   401k is posttax so your question.
   401k is pretax but the roth 401k is pretax but the traditional 401k is pretax but the traditional 401k is pretax but the roth 401k is posttax so your question.
   401k is pretax but the traditional 401k is posttax so your question.

Leave a Reply

Name (required)

Email Address(required)

Website