I just started contributing 3% of my pay to a traditional 401K and 3% of my pay to a Roth 401K.
Looking at my pay check, the same exact amount has been deducted for both traditional and Roth. Let's call it $30. It is coming out of my gross earning. Let's call that $1,000. 3% of $1,000 is $30 - $60 total for both.
Here's the stupid question. Shouldn't those amounts be different since one is not taxed (traditional) and the other should have already been taxed (Roth)?
That amount for traditional makes sense to me , but I would expect my Roth to be like $20 in my hypothetical since I pay taxes NOW on it.
Or is that math being done behind the scenes so that when I say 3%, it just looks like 3%?
Submitted August 25, 2017 at 08:54AM by ThirtyNinePercent http://ift.tt/2wubkg4
