Jul
19
In a roth 401k, the deduction is based on after tax dollars, is that also after 401k and other pre tax ded…
Filed Under Financial Planning | 2 Comments
t c asked:
Froma previous post, I saw that it is calculated based off of after tax, and after regular 401k deductions, so my example was 3% deduction for each 401k. 1000 gross pay, -30 for regular 401k-250 for taxes = 720 *3% roth 401k = $21.60 w/h for roth..now , if they have health insurance taken out pre tax, I assum that also subtracts before doing the decution calc.. is that correct? Lastly.. if the company is matching dollar for dollar up to 3% of total contributions, and then .50 on the dollar after that.. woould all of that calc off of the gross no matter what, because all employer contr. have to be pre tax?
Question posted courtesy of: Cory
Froma previous post, I saw that it is calculated based off of after tax, and after regular 401k deductions, so my example was 3% deduction for each 401k. 1000 gross pay, -30 for regular 401k-250 for taxes = 720 *3% roth 401k = $21.60 w/h for roth..now , if they have health insurance taken out pre tax, I assum that also subtracts before doing the decution calc.. is that correct? Lastly.. if the company is matching dollar for dollar up to 3% of total contributions, and then .50 on the dollar after that.. woould all of that calc off of the gross no matter what, because all employer contr. have to be pre tax?
Question posted courtesy of: Cory
