Roth 401(k) Contribution
After-tax retirement contribution. You pay taxes now, but withdrawals in retirement are tax-free.
Who pays it
Anyone enrolled in their employer's Roth 401(k) option. Contributions come from post-tax pay.
How much
Same IRS annual limit as a traditional 401(k) ($23,000 in 2024; +$7,500 catch-up if 50+). Combined Traditional + Roth contributions can't exceed the limit.
Where it appears on your W-2
Box 12 with code AA. Does not reduce Box 1 wages.
Tax impact
No tax break today. Withdrawals in retirement (including the growth) are tax-free, as long as you're 59½+ and the account is 5+ years old.
Common questions about ROTH
Should I do Traditional or Roth 401(k)?
Rule of thumb: Roth if you expect higher tax rates in retirement (early career, lower tax bracket now); Traditional if you expect lower rates later (peak earning years).
Do employer matches go to my Roth or Traditional?
Match dollars are pre-tax by default and go into the Traditional side, even if you contribute to Roth. The SECURE 2.0 Act allows some employers to offer Roth matches — check your plan.
Filing your taxes?
If understanding ROTH is part of getting your return right, these tools handle the math for you.
Affiliate links — we may earn a commission at no cost to you.
See ROTH in your own paystub
Upload your PDF and our AI will show you exactly how ROTH interacts with the rest of your deductions.
Upload paystub →