This is now offered thru work 401 (k).

If I contribute to that, does it get allocated to the same investments as I have my 401(k)?

Thanks

It should be the same. Off-chance it could be different between providers, but worked that way with Fidelity and Voya on mine.

Works that way where I am. Able to contribute up to $16,500 I think it is to the Roth and I select what percent goes into the various funds I picked (self directed through NRECA). Sweet deal.

Yes. Whatever you contribute will count toward your annual 401(k) max contribution. Provided it's through the same provider it will be allocated to the funds you select for your traditional 401(k) at the same percentages.

One poster above alluded to it being managed by a separate provider... I would suspect that if that were the case the company would probably move everything to the new provider. Two plans for the company would be a record keeping nightmare I suspect.

Your employer contribution or employer match is NOT eligible to be a ROTH contribution. It will continue to go into your traditional pre-tax 401(k). The employer dollars are not taxed and they are not classified as ordinary income so they are not subject to taxation on your annual W2.

Thanks all. Very helpful.

You might ask your employer. You do know investment offerings vary from employer to employer, right? Mine never offered the Roth 401K option at all (I retired in 2018) despite being one of the biggest providers in the industry (Merrill).

Merrill offered a Roth 401k. I contributed to it when I worked there.

Not sure if that's always true. My employer match is after tax. It specifically notes that on the Roth 401k statement. It seperates Qualified vs Non Qualified and vested vs. Non-vested if you have multiple accounts or moved from 401k to Roth 401k or vice versa. I have one account and account number for my Roth 401k and all of my contributions and employee safe harbor contributions are related purchased holdings are in that one account. I'm looking at the statement.

Edit to add: The plan admin is Empower Financial.

JustPanda said:

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Merrill offered a Roth 401k. I contributed to it when I worked there.

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I retired in 2018, wasn't available then.

OldArmyCT said:

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JustPanda said:

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Merrill offered a Roth 401k. I contributed to it when I worked there.

---

I retired in 2018, wasn't available then.

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This was true in others I spot checked too.. From Merrill's 2012 5500 filing (page 6):

Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan
Notes to Financial Statements
December 31, 2012 and 2011
_______________________________________________________________________________________
1. Description of the Plan (Continued)
SIP Account (Continued)
Pre-tax Contributions
Each participant may elect to make contributions to the Plan on a pre-tax basis through
payroll deductions from 1% through 25% of such participant's eligible compensation
(as defined in the Plan document) for each pay period. In accordance with federal law,
2012 annual pre-tax contributions were limited to $17,000 for participants who are
below age 50. In addition, participants who are age 50 or older and have made the
maximum contribution to the Plan can make an additional catch up contribution to the
Plan through payroll deductions up to a maximum of $5,500 in 2012. A participant can
elect to change the rate at which his/her contribution is determined at any time during
the year. If an employee makes both pre-tax contributions and Roth after-tax
contributions (described below), these percentage and dollar contribution limits apply
to these types of contributions in the aggregate.

Roth 401(k) Contributions
Employees are eligible to contribute on an after-tax basis through payroll deductions
from 1% to 25% of eligible compensation as Roth 401(k) deductions. In addition,
participants who are age 50 or older and have made the maximum contribution to the
Plan can make an additional Roth catch up contribution to the Plan through payroll
deductions up to a maximum of $5,500 in 2012. Provided requirements are met,
withdrawals of contributions and any earnings are tax free. A participant's combined
pre-tax and Roth 401(k) contributions cannot exceed the maximum annual amount
allowed by law.
After Tax Contributions
A participant may elect to contribute up to 25% of his/her eligible compensation in
traditional (non-Roth) after-tax dollars up to an annual maximum of $10,000.
Employer Contributions
Beginning July 1, 2012, Company matching contributions increased to 100% of the
first 5% (4% prior to July 1, 2012) of the participant's eligible compensation
contributed to the Plan as pre-tax and/or Roth 401(k) contributions for employees with
at least 1 year of service. Annual company-match maximum contributions of $

Apparently there is a way an employer can do that. I was watching a video last night that mentioned it. I'm not certain on all of the details of how it works.

Kenneth_2003 said:

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Apparently there is a way an employer can do that. I was watching a video last night that mentioned it. I'm not certain on all of the details of how it works.

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It became allowable with the Secure Act 2.0.

Casey TableTennis said:

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OldArmyCT said:

---

JustPanda said:

---

Merrill offered a Roth 401k. I contributed to it when I worked there.

---

I retired in 2018, wasn't available then.

---

This was true in others I spot checked too.. From Merrill's 2012 5500 filing (page 6):

Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan
Notes to Financial Statements
December 31, 2012 and 2011
_______________________________________________________________________________________
1. Description of the Plan (Continued)
SIP Account (Continued)
Pre-tax Contributions
Each participant may elect to make contributions to the Plan on a pre-tax basis through
payroll deductions from 1% through 25% of such participant's eligible compensation
(as defined in the Plan document) for each pay period. In accordance with federal law,
2012 annual pre-tax contributions were limited to $17,000 for participants who are
below age 50. In addition, participants who are age 50 or older and have made the
maximum contribution to the Plan can make an additional catch up contribution to the
Plan through payroll deductions up to a maximum of $5,500 in 2012. A participant can
elect to change the rate at which his/her contribution is determined at any time during
the year. If an employee makes both pre-tax contributions and Roth after-tax
contributions (described below), these percentage and dollar contribution limits apply
to these types of contributions in the aggregate.

Roth 401(k) Contributions
Employees are eligible to contribute on an after-tax basis through payroll deductions
from 1% to 25% of eligible compensation as Roth 401(k) deductions. In addition,
participants who are age 50 or older and have made the maximum contribution to the
Plan can make an additional Roth catch up contribution to the Plan through payroll
deductions up to a maximum of $5,500 in 2012. Provided requirements are met,
withdrawals of contributions and any earnings are tax free. A participant's combined
pre-tax and Roth 401(k) contributions cannot exceed the maximum annual amount
allowed by law.
After Tax Contributions
A participant may elect to contribute up to 25% of his/her eligible compensation in
traditional (non-Roth) after-tax dollars up to an annual maximum of $10,000.
Employer Contributions
Beginning July 1, 2012, Company matching contributions increased to 100% of the
first 5% (4% prior to July 1, 2012) of the participant's eligible compensation
contributed to the Plan as pre-tax and/or Roth 401(k) contributions for employees with
at least 1 year of service. Annual company-match maximum contributions of $

---

I came via the Bank of America side and even after buying Merrill we BoA "outsiders" were in the BoA plan until they converted to one plan, I forget which year that was but I'm thinking 2017 or so.

• No income limits: Anyone can contribute to a Roth 401(k), if available, regardless of income level.
• In contrast, only individuals earning less than $144,000 in 2022 $214,000 for married couples can contribute to a Roth IRA.

I make too much for a Roth IRA- and have a corporate 401K but it's not a Roth.

Is there some kind of benefit to using a Roth 401K over an employer provided corporate 401K?

OldArmyCT said:

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Casey TableTennis said:

---

OldArmyCT said:

---

JustPanda said:

---

Merrill offered a Roth 401k. I contributed to it when I worked there.

---

I retired in 2018, wasn't available then.

---

This was true in others I spot checked too.. From Merrill's 2012 5500 filing (page 6):

Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan
Notes to Financial Statements
December 31, 2012 and 2011
_______________________________________________________________________________________

Roth 401(k) Contributions
Employees are eligible to contribute on an after-tax basis through payroll deductions
from 1% to 25% of eligible compensation as Roth 401(k) deductions. In addition,
participants who are age 50 or older and have made the maximum contribution to the

---

I came via the Bank of America side and even after buying Merrill we BoA "outsiders" were in the BoA plan until they converted to one plan, I forget which year that was but I'm thinking 2017 or so.

---

Looks like BOA added Roth to 401(k) effective 1/1/13. This is from the BOA 2012 5500 filing:

13. Subsequent Events
In preparing the Plan's financial statements, subsequent events and transactions have
been evaluated for potential recognition. Plan management determined that there are no
subsequent events or transactions that require disclosure to or adjustment in the
financial statements except as disclosed below:
Effective January 1, 2013, the following changes were made to features of the Plan:
- The Plan provides a Roth 401(k) feature that allows for after-tax contributions
through salary deductions of plan-eligible compensation.

Casey TableTennis said:

---

OldArmyCT said:

---

Casey TableTennis said:

---

OldArmyCT said:

---

JustPanda said:

---

Merrill offered a Roth 401k. I contributed to it when I worked there.

---

I retired in 2018, wasn't available then.

---

This was true in others I spot checked too.. From Merrill's 2012 5500 filing (page 6):

Merrill Lynch & Co., Inc. 401(k) Savings & Investment Plan
Notes to Financial Statements
December 31, 2012 and 2011
_______________________________________________________________________________________

Roth 401(k) Contributions
Employees are eligible to contribute on an after-tax basis through payroll deductions
from 1% to 25% of eligible compensation as Roth 401(k) deductions. In addition,
participants who are age 50 or older and have made the maximum contribution to the

---

I came via the Bank of America side and even after buying Merrill we BoA "outsiders" were in the BoA plan until they converted to one plan, I forget which year that was but I'm thinking 2017 or so.

---

Looks like BOA added Roth to 401(k) effective 1/1/13. This is from the BOA 2012 5500 filing:

13. Subsequent Events
In preparing the Plan's financial statements, subsequent events and transactions have
been evaluated for potential recognition. Plan management determined that there are no
subsequent events or transactions that require disclosure to or adjustment in the
financial statements except as disclosed below:
Effective January 1, 2013, the following changes were made to features of the Plan:
- The Plan provides a Roth 401(k) feature that allows for after-tax contributions
through salary deductions of plan-eligible compensation.

---

BOA certainly ran things, they bought Merrill about 4 years before that. But as I said I was a legacy BOA and we had discrete plans. We didn't even get the Merrill investments for a long time, my 401 investment options were not the same as the guy in the office next to me.

LMCane said:

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• No income limits: Anyone can contribute to a Roth 401(k), if available, regardless of income level.
• In contrast, only individuals earning less than $144,000 in 2022 $214,000 for married couples can contribute to a Roth IRA.

I make too much for a Roth IRA- and have a corporate 401K but it's not a Roth.

Is there some kind of benefit to using a Roth 401K over an employer provided corporate 401K?

---

A Roth 401(k) is, if offered, just another option within your employers 401(k) plan. It is not a separate thing. It is part of your employer program.

As for the benefit of a Roth401(k) over a Traditional 401(k) the decision tree would be similar to the one you'd use for an IRA.

One thing though is the higher deposit limits. I think the Roth option within a 401(k) plan enables you to potentially "play" with your taxable income in retirement. In retirement your money will fall into, broadly speaking, several buckets. Retirement account income and SS will be treated as ordinary income and will carry your highest tax liability. Obviously you won't be able to eliminate all ordinary income but having a nice big Roth bucket at your disposal would allow a big purchase (and perhaps an accompanying account distribution) to be made tax free. Example, if you decide to buy a big RV or pay cash for a purchase vs financing, or a big vacation, uninsured medical procedure, etc... You could use Roth dollars without moving you to a higher tax bracket.