My son has a Roth/401k at work, the company has a match, that is dependent on company profits and paid once a year
I have read that company matches that are put in a Roth/401k are taxed at withdrawal. Is that true?
For 2023 he put in $22,500 and the company match (Dec5) was $3,675.
How is that treated? I don't see how it is taxed. I have ask him to ask his employer, today is the first time I pushed it enough that now he at least understands why I ask the question.
EDIT: While looking at company documents, he did find employer contributions go into a separate traditional 401. Now, I told him to make sure his portion is going into a Roth 401k.
I have read that company matches that are put in a Roth/401k are taxed at withdrawal. Is that true?
For 2023 he put in $22,500 and the company match (Dec5) was $3,675.
How is that treated? I don't see how it is taxed. I have ask him to ask his employer, today is the first time I pushed it enough that now he at least understands why I ask the question.
EDIT: While looking at company documents, he did find employer contributions go into a separate traditional 401. Now, I told him to make sure his portion is going into a Roth 401k.
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