Contribute after tax
Roth contributions are included in your current taxable income. Unlike traditional pre-tax deferrals, they generally do not reduce your federal taxable income for the contribution year.
401k Calculator & Guide
Roth 401(k) contributions let you pay income tax on eligible contributions today in exchange for the possibility of tax-free qualified withdrawals later. Learn how contribution limits work, how employer matching fits in, and what to consider before choosing Roth contributions.
U.S. retirement planning · 2026 limits · Educational information, not individualized tax advice
Roth 401(k) contributions are employee salary deferrals made with after-tax dollars into a designated Roth account inside an employer-sponsored retirement plan. You pay income tax on the contributions in the year you earn the money, while qualified distributions of contributions and investment earnings can generally be tax-free.
Roth contributions are included in your current taxable income. Unlike traditional pre-tax deferrals, they generally do not reduce your federal taxable income for the contribution year.
Your Roth 401(k) balance can be invested in the options available through your employer's plan. Returns depend on your investments and are not guaranteed.
Qualified distributions, including earnings, can generally be excluded from federal gross income when the applicable five-taxable-year and qualifying-event requirements are met.
The annual employee limit is shared between traditional pre-tax and Roth 401(k) salary deferrals. You can generally divide that limit between the two options in proportions permitted by your plan.
| Contribution category | 2026 limit | Who it applies to |
|---|---|---|
| Regular employee deferrals | $24,500 | Eligible participants, subject to plan and compensation rules |
| General catch-up contribution | $8,000 | Eligible participants age 50 or older |
| Potential total at age 50–59 | $32,500 | Regular limit plus general catch-up |
| Higher catch-up for ages 60–63 | $11,250 | Eligible participants turning 60–63 during the calendar year |
| Potential total at age 60–63 | $35,750 | Regular limit plus higher catch-up |
These are 2026 federal limits for most 401(k) plans. The plan must permit catch-up contributions, and special rules can apply. Employer contributions are separate from the employee elective deferral limit but count toward applicable overall plan limits.
If you contribute $10,000 to a traditional 401(k), you generally have $14,500 of the $24,500 regular employee limit remaining for Roth 401(k) deferrals in 2026, assuming no other relevant deferrals affect the limit.
Starting in 2026, eligible catch-up contributions generally must be Roth for participants whose prior-year wages from the plan sponsor exceeded the applicable $150,000 threshold for 2026. Confirm the rule and your wage figure with your plan administrator.
The biggest difference is when you pay income tax. The better option depends on your current tax situation, expected retirement income, and the value you place on tax flexibility later.
| Feature | Roth 401(k) | Traditional 401(k) |
|---|---|---|
| Tax treatment of employee contributions | After-tax | Generally pre-tax for federal income tax |
| Current federal taxable income | Generally not reduced by the contribution | Generally reduced by the contribution |
| Investment growth | Tax-deferred inside the account | Tax-deferred inside the account |
| Qualified retirement withdrawals | Generally tax-free | Generally taxable as ordinary income |
| Income limit to contribute | No Roth IRA-style income phase-out | No Roth IRA-style income phase-out |
| Annual employee limit | Shared with traditional 401(k) deferrals | Shared with Roth 401(k) deferrals |
Yes. If the plan permits, an employer can calculate matching contributions based on your Roth 401(k) deferrals. The match itself is handled under the plan's employer-contribution rules.
Suppose your employer matches 50% of eligible employee contributions up to 6% of salary. If you earn $80,000 and contribute 6% ($4,800), the employer's matching formula could provide $2,400 for the year, assuming you meet the plan's requirements.
Under the standard designated Roth 401(k) rules, employer matching contributions are generally allocated to a separate non-Roth account, even when the employee's contribution is Roth. If your plan offers a permitted Roth employer-contribution option, verify its tax treatment and election requirements.
Estimate your annual Roth contribution, potential take-home pay impact, and the difference between Roth and traditional contributions. This is a simplified estimate, not a tax-return calculator.
The tax-cost estimate multiplies the Roth contribution by your entered marginal federal tax rate to approximate the current federal income tax difference compared with an otherwise equivalent traditional contribution. It is not a calculation of your actual tax liability or take-home pay. The calculator does not model the age 50+ catch-up limit, the age 60–63 higher catch-up, compensation caps, other plans, or special plan rules.
Roth treatment can be valuable, but the tax benefits depend on following the rules. Understand how contributions are taxed, when withdrawals qualify, and what happens if you need money early.
Your designated Roth contributions are included in current gross income and generally subject to applicable wage withholding. They are not a deduction from current federal taxable income.
A qualified distribution generally occurs after a five-taxable-year participation period and after age 59½, due to disability, or after death, subject to the applicable rules.
A distribution that is not qualified can make the earnings portion taxable, and an additional 10% tax may apply unless an exception is available. Plan distribution rules also matter.
Designated Roth 401(k) contributions generally are not restricted by the modified adjusted gross income phase-out that applies to direct Roth IRA contributions.
Under current federal law, designated Roth 401(k) accounts are not subject to lifetime required minimum distributions for the original account owner. Beneficiary distribution rules still apply.
You generally cannot later reclassify a Roth contribution as a traditional pre-tax contribution simply because you changed your mind. Check plan election deadlines before changing your payroll deferrals.
Use these steps to check whether your workplace plan offers Roth deferrals and to make an informed contribution election.
Explore related topics to understand how Roth contributions fit into your wider retirement strategy.
Learn how designated Roth accounts work and how their tax treatment differs from traditional plans.
Compare current tax treatment, qualified withdrawals, and considerations for choosing an account type.
Understand the annual employee deferral limit and catch-up contribution rules.
Learn how matching contributions may work when you choose Roth employee deferrals.
Explore the five-year requirement, qualifying events, and distribution tax rules.
Estimate possible account growth under different contribution and return assumptions.
Verify that every internal link points to a published page on 401k.blog. Publish the matching page or remove the card until the destination is live.
Answers to common questions about contribution limits, taxes, employer matching, and withdrawal rules.
Generally, no. Roth 401(k) contributions are made with after-tax dollars and are included in your gross income for the contribution year. Qualified distributions, including earnings, can generally be tax-free under applicable rules.
The regular employee elective deferral limit for most 401(k) plans is $24,500 in 2026. Traditional pre-tax and Roth deferrals share that limit. Eligible participants age 50 or older may qualify for an additional catch-up contribution, and a higher catch-up applies to eligible participants turning 60–63 during the year. See the IRS 2026 limits.
Generally, yes. A designated Roth 401(k) does not use the income phase-out rules that restrict direct Roth IRA contributions. You must participate in a workplace plan that offers the Roth feature and follow its terms and contribution limits.
Yes, if your plan allows both options. You can divide employee deferrals between them, but their combined total generally cannot exceed the annual employee elective deferral limit, including any applicable catch-up limits.
Employer matching contributions can be based on Roth employee deferrals if the plan permits. Under the standard designated Roth rules, matching contributions are generally placed in a separate non-Roth account. Ask your plan administrator how your plan handles matching contributions and their tax treatment.
A qualified distribution generally requires the applicable five-taxable-year participation period and a qualifying event, such as reaching age 59½, disability, or death. A distribution that does not qualify may have taxable earnings and could be subject to an additional tax unless an exception applies.
They have different rules and features. A Roth 401(k) is employer-sponsored and may offer a higher contribution limit, payroll deductions, and matching benefits. A Roth IRA is individually owned and has different contribution eligibility and withdrawal rules. Some people use both if eligible and their finances permit.
Under current federal law, the original owner of a designated Roth 401(k) account is not required to take lifetime required minimum distributions from that account. Beneficiaries can still be subject to distribution requirements after the account owner's death.
Most plans allow you to change future payroll elections according to their procedures and deadlines. However, contributions already designated as Roth generally cannot simply be reclassified as traditional pre-tax contributions. Check your plan before making a change.
Compare Roth and traditional contributions, confirm the rules in your workplace plan, and choose a contribution amount that fits your broader financial goals.
Use official government resources to verify current limits and the rules that apply to your plan.
Tax law and plan terms can change. Confirm the rules for your tax year and your own workplace plan before acting.
Clear guides, useful calculators and practical retirement resources to help you understand your 401(k), contributions, employer matching, Roth options, rollovers and long-term savings.
© Copyright 2026. All Rights Reserved.