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Roth 401k contributions are subject to the same traditional 401k contribution limits. I think you are not understanding. Where does this conflicting information
by vmception 5y ago
Roth 401k contributions are subject to the same traditional 401k contribution limits. I think you are not understanding. Where does this conflicting information come from?
Do note that there is a super confusing "after tax 401k" as well as a "roth 401k" which is also after tax but different. Search engines have trouble with this, and it also confuses gurus. But neither of these reduce a 401k contribution down to $5k, and the roth 401k is all taxed now and tax free later exactly like a roth ira with 1,000% higher contribution limits.
Sources for my world:
https://www.nixonpeabody.com/en/ideas/blog/trusts-and-estates/2019/02/25/roth-401-k-vs-after-tax-401-k https://www.nixonpeabody.com/en/ideas/blog/trusts-and-estate...
My CPA
https://www.nerdwallet.com/article/investing/roth-401k https://www.nerdwallet.com/article/investing/roth-401k
https://www.irs.gov/retirement-plans/roth-comparison-chart https://www.irs.gov/retirement-plans/roth-comparison-chart (only details the employee contribution here)