A Roth 401(k) is a retirement savings plan for qualified employees. Contributions are deducted from an employee's check after federal and state taxes are calculated. In some plans, the employer may also contribute by matching up to a certain percent of the employee's contribution. The maximum contribution an employee under 50 can make in 2016 is $18,000. If the employee is over 50 they may make an additional catch up contribution of $6,000.
Note: You can get a Roth 401(k) fully integrated with your Gusto account through our partner Guideline. Learn more here.