Freezing in NH

All Financial Matters posted in July that my wife’s company will begin offering the roth 401k next year.

My company starting offering the Roth 401(k) July 1.  For some of the reasons mentioned above (e.g. tax diversity) I decided to split my contributions as well.  Interestingly our plan doesn’t make clear what happens with the employer match, and the call I made to HR July 1 landed me with someone who wasn’t sure either.

I left the 6% contribution required for employer match in the regular 401(k) and moved 4% over (I contribute 10% of my salary in total) to the Roth.  I didn’t know if the employer match stays with the regular 401(k) or gets split 60/40. 

As far as I can tell from the year-end paperwork (delivered “tree-free” online) the employer match all counts as “pre-tax” no matter what I do.  They aren’t going to be paying any taxes for me.  I’m not sure how that would work if I had only the Roth, would they still have a regular 401(k) for the employer contribution? 

This entry was posted on Friday, January 4th, 2008 at 12:18 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.