How do I know if my 401(k) is Roth or Traditional (or both)?

To identify whether your 401(k) is Roth, Traditional, or both, you can take a few straightforward steps:

1. Examine Plan Statements and Website: Statements and your plan's website should specify if contributions are Roth or Traditional. If you have both, they might be listed separately. The account name or details online often directly indicate the tax type.

2. Review Pay Stubs:

Traditional 401(k): Contributions are pre-tax, reducing taxable income now.

Roth 401(k): Contributions are after-tax, offering tax-free withdrawals in retirement.

3. Contact HR or Plan Administrator:

If still unclear, your HR department or the plan administrator can clarify your account type(s).

Key Tip:

If you're contributing to a Roth 401(k) and receive employer matches, note that these matches are contributed to a Traditional 401(k) part of your account, due to tax rules. This means you'll have both tax-free (Roth) and tax-deferred (Traditional) balances growing. Your online portal or statements will usually separate these to show each account's balance and contribution type, aiding in your retirement strategy planning.