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1. Does this count as a bonus when time to withdrawl?

I'm not sure what you mean by it being counted as a bonus. When it is withdrawn it is like any other withdrawal from a 401k. You will be taxed at ordinary income tax rate.

2. Does this effect how much I can put into a 401(k)?

Probably not. It does not apply to your personal contribution limit which is something like $15K. There is also a limit to the total contributions by employer and employee. That limit is something like $45K. Don't hold me to the numbers. If they are important they can be looked up.

3. Can this be converted into a Roth 401(k)?

I don't think so, but, I am not too familiar with the Roth 401k regs. When you terminate the plan (terminate employment) the 401k could be rolled over to a traditional IRA and then converted to a Roth IRA.

HTH, Bob
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