I'm looking at opening up an individual 401k and started doing some research on the Vangard website. I ran across this section and needed clarification:
Employer contributions Maximum employer contribution per eligible employee is $52,000 for the 2014 tax year and $53,000 for the 2015 tax year. Maximum tax deductible employer contribution is 25% of compensation. Deductible as a business expense and not required every year.
So does this mean no tax is paid on the employer contributions (by the employee) even if you set it up as a ROTH? If it is then to me it looks like you never pay taxes on the employer contribution. Is that right or am I missing something?
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