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So, there is no separation of tax rate between contribution and gains ?

Correct. And it is for this reason that people sometimes recommend holding stock that you intend to hold for the long term in a taxable account. If you held the stock in a taxable account, then the gain would be taxed at your capital gains rate, which maxes out at 15%.

If you held the stock in your 401k, then you'd effectively be taxed at your marginal tax rate when the dollars are distributed from the account.
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