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. If the deduction is based on a percentage, we'll use the gross pay to calculate the amount that will then be deducted from the employee's net pay.
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 2018 is $18,500. 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.