Roth 401(k) contribution on your paycheck
After-tax retirement contribution. Qualified withdrawals are tax-free.
A Roth 401(k) contribution is taken from your paycheck after taxes. It does not reduce current taxable income, but qualified withdrawals (including investment growth) in retirement are tax-free.
How it usually appears
Category: post-tax
Tax interaction
- Reduces federal taxable wages: No
- Reduces FICA wages: No
- Reduces state taxable wages: Usually no
Official sources
- IRS — 401(k) limit increases — IRS · 2025 · last verified 2025-04-01
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